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 811-23090
Oppenheimer Small Cap Value Fund
(Exact name of registrant as specified in charter)
6803 South Tucson Way, Centennial, Colorado 80112-3924
(Address of principal executive offices) (Zip code)
Cynthia Lo Bessette
OFI Global Asset Management, Inc.
225 Liberty Street, New York, New York 10281-1008
(Name and address of agent for service)
Registrants telephone number, including area code: (303) 768-3200
Date of fiscal year end: April 30
Date of reporting period: 10/31/2016
Item 1. Reports to Stockholders.
Semiannual Report 10/31/2016 OppenheimerFunds® The Right Way to Invest Oppenheimer Small Cap Value Fund
3 | ||||
6 | ||||
9 | ||||
11 | ||||
15 | ||||
17 | ||||
18 | ||||
19 | ||||
24 | ||||
Board Approval of the Funds Investment Advisory and Sub-Advisory Agreements |
38 | |||
Portfolio Proxy Voting Policies and Guidelines; Updates to Statement of Investments |
41 | |||
42 | ||||
43 |
Class A Shares
CUMULATIVE TOTAL RETURNS AT 10/31/16
Class A Shares of the Fund | ||||||
Without Sales Charge | With Sales Charge | Russell 2000 Value Index | ||||
6-Month |
5.86% | -0.23% | 7.54% | |||
| ||||||
Since Inception (12/7/15) |
7.34 | 1.17 | 9.27 | |||
|
Performance data quoted represents past performance, which does not guarantee future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investors shares, when redeemed, may be worth more or less than their original cost. Fund returns include changes in share price, reinvested distributions, and a 5.75% maximum applicable sales charge except where without sales charge is indicated. Current performance may be lower or higher than the performance quoted. Returns do not consider capital gains or income taxes on an individuals investment. For performance data current to the most recent month-end, visit oppenheimerfunds.com or call 1.800.CALL OPP (225.5677). See Fund prospectuses and summary prospectuses for more information on share classes and sales charges.
2 OPPENHEIMER SMALL CAP VALUE FUND
The Funds Class A shares (without sales charge) produced a return of 5.86%. In comparison, the Russell 2000 Value Index (the Index) returned 7.54% during the same period. The Funds underperformance relative to the Index stemmed from weaker relative stock selection in the financials, industrials, and materials sectors. The Fund outperformed the Index within health care and information technology sectors due to stock selection and an overweight position in information technology. The Fund also outperformed in the utilities sector due to stock selection.
3 OPPENHEIMER SMALL CAP VALUE FUND
4 OPPENHEIMER SMALL CAP VALUE FUND
5 OPPENHEIMER SMALL CAP VALUE FUND
SECTOR ALLOCATION
Portfolio holdings and allocations are subject to change. Percentages are as of October 31, 2016, and are based on the total market value of common stocks.
6 OPPENHEIMER SMALL CAP VALUE FUND
Share Class Performance
CUMULATIVE TOTAL RETURNS WITHOUT SALES CHARGE AS OF 10/31/16
Inception Date |
6-Month | Since Inception |
||||||||||
Class A (OVSAX) |
12/7/15 | 5.86 | % | 7.34 | % | |||||||
Class C (OVSCX) |
12/7/15 | 5.49 | 6.61 | |||||||||
Class I (OVSIX) |
12/7/15 | 6.08 | 7.67 | |||||||||
Class R (OVSRX) |
12/7/15 | 5.76 | 7.10 | |||||||||
Class Y (OVSYX) |
12/7/15 | 6.05 | 7.58 |
CUMULATIVE TOTAL RETURNS WITH SALES CHARGE AS OF 10/31/16
Inception Date |
6-Month | Since Inception |
||||||||||
Class A (OVSAX) |
12/7/15 | -0.23 | % | 1.17 | % | |||||||
Class C (OVSCX) |
12/7/15 | 4.49 | 5.61 | |||||||||
Class I (OVSIX) |
12/7/15 | 6.08 | 7.67 | |||||||||
Class R (OVSRX) |
12/7/15 | 5.76 | 7.10 | |||||||||
Class Y (OVSYX) |
12/7/15 | 6.05 | 7.58 |
Performance data quoted represents past performance, which does not guarantee future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investors shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted. Returns do not consider capital gains or income taxes on an individuals investment. For performance data current to the most recent month-end, visit oppenheimerfunds.com or call 1.800.CALL OPP (225.5677). Fund returns include changes in share price, reinvested distributions, and the applicable sales charge: for Class A shares, the current maximum initial sales charge of 5.75% and for Class C shares, the contingent deferred sales charge (CDSC) of 1% for the 1-year period. There is no sales charge for Class I, Class R and Class Y shares. See Fund prospectuses and summary prospectuses for more information on share classes and sales charges.
The Funds performance is compared to the performance of the Russell 2000 Value Index, which measures the performance of the small-cap value segment of the U.S. equity universe. It includes those Russell 2000 companies with lower price-to-book ratios and lower forecasted growth values. The Index is unmanaged and cannot be purchased directly by investors. While index comparisons may be useful to provide a benchmark for the Funds performance, it must be noted that the Funds investments are not limited to the investments comprising the indices. Index performance includes reinvestment of income, but does not reflect transaction costs, fees, expenses or taxes. Index performance is shown for illustrative purposes only as a benchmark for the Funds performance, and does not predict or depict performance of the Fund. The Funds performance reflects the effects of the Funds business and operating expenses.
The Funds investment strategy and focus can change over time. The mention of specific fund holdings does not constitute a recommendation by OppenheimerFunds, Inc. or its affiliates.
7 OPPENHEIMER SMALL CAP VALUE FUND
Before investing in any of the Oppenheimer funds, investors should carefully consider a funds investment objectives, risks, charges and expenses. Fund prospectuses and summary prospectuses contain this and other information about the funds, and may be obtained by asking your financial advisor, visiting oppenheimerfunds.com, or calling 1.800.CALL OPP (225.5677). Read prospectuses and summary prospectuses carefully before investing.
Shares of Oppenheimer funds are not deposits or obligations of any bank, are not guaranteed by any bank, are not insured by the FDIC or any other agency, and involve investment risks, including the possible loss of the principal amount invested.
8 OPPENHEIMER SMALL CAP VALUE FUND
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 and/or contingent deferred sales charges on redemptions; and (2) ongoing costs, including management fees; distribution and service fees; and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The examples are based on an investment of $1,000.00 invested at the beginning of the period and held for the entire 6-month period ended October 31, 2016.
Actual Expenses. The first section of the table provides information about actual account values and actual expenses. You may use the information in this section 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 first section under the heading entitled Expenses Paid During 6 Months Ended October 31, 2016 to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes. The second section of the table provides information about hypothetical account values and hypothetical expenses based on the Funds actual expense ratio for each class of shares, and an assumed rate of return of 5% per year for each class before expenses, which is not the Funds 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). Therefore, the hypothetical section of the table is 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.
9 OPPENHEIMER SMALL CAP VALUE FUND
Actual | Beginning Account Value May 1, 2016 |
Ending Account Value October 31, 2016 |
Expenses Paid During 6 Months Ended October 31, 2016 |
|||||||||
Class A |
$ 1,000.00 | $ | 1,058.60 | $ | 6.51 | |||||||
Class C |
1,000.00 | 1,054.90 | 10.31 | |||||||||
Class I |
1,000.00 | 1,060.80 | 4.84 | |||||||||
Class R |
1,000.00 | 1,057.60 | 7.81 | |||||||||
Class Y |
1,000.00 | 1,060.50 | 5.21 | |||||||||
Hypothetical (5% return before expenses) |
||||||||||||
Class A |
1,000.00 | 1,018.90 | 6.38 | |||||||||
Class C |
1,000.00 | 1,015.22 | 10.11 | |||||||||
Class I |
1,000.00 | 1,020.52 | 4.75 | |||||||||
Class R |
1,000.00 | 1,017.64 | 7.66 | |||||||||
Class Y |
1,000.00 | 1,020.16 | 5.10 |
Expenses are equal to the Funds annualized expense ratio for that class, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). Those annualized expense ratios, excluding indirect expenses from affiliated funds, based on the 6-month period ended October 31, 2016 are as follows:
Class | Expense Ratios | |||
Class A |
1.25% | |||
Class C |
1.98 | |||
Class I |
0.93 | |||
Class R |
1.50 | |||
Class Y |
1.00 |
The expense ratios reflect voluntary and/or contractual waivers and/or reimbursements of expenses by the Funds Manager. Some of these undertakings may be modified or terminated at any time, as indicated in the Funds prospectus. The Financial Highlights tables in the Funds financial statements, included in this report, also show the gross expense ratios, without such waivers or reimbursements and reduction to custodian expenses, if applicable.
10 OPPENHEIMER SMALL CAP VALUE FUND
STATEMENT OF INVESTMENTS October 31, 2016 Unaudited
11 OPPENHEIMER SMALL CAP VALUE FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
12 OPPENHEIMER SMALL CAP VALUE FUND
Footnotes to Statement of Investments
1. Non-income producing security.
2. Security is a Master Limited Partnership.
3. Rate shown is the 7-day yield at period end.
4. Is or was an affiliate, as defined in the Investment Company Act of 1940, as amended, at or during the reporting period, 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 adviser. Transactions during the reporting period in which the issuer was an affiliate are as follows:
Shares April 29, 2016a |
Gross Additions |
Gross Reductions |
Shares October 31, 2016 |
|||||||||||||
Oppenheimer Institutional Government Money Market Fund, Cl. Eb | 159,537 | 5,440,698 | 4,831,697 | 768,538 |
13 OPPENHEIMER SMALL CAP VALUE FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
Footnotes to Statement of Investments
(Continued)
Value | Income | |||||||
Oppenheimer Institutional Government Money Market Fund, Cl. Eb | $ | 768,538 | $ | 1,276 |
a. Represents the last business day of the Funds reporting period.
b. Prior to September 28, 2016, this fund was named Oppenheimer Institutional Money Market Fund.
See accompanying Notes to Financial Statements.
14 OPPENHEIMER SMALL CAP VALUE FUND
STATEMENT OF ASSETS AND LIABILITIES October 31, 2016 Unaudited
|
||||
Assets |
||||
Investments, at valuesee accompanying statement of investments: |
||||
Unaffiliated companies (cost $13,294,324) |
$ | 13,930,878 | ||
Affiliated companies (cost $768,538) |
768,538 | |||
|
|
|||
14,699,416 | ||||
|
||||
Receivables and other assets: |
||||
Investments sold |
141,891 | |||
Shares of beneficial interest sold |
64,748 | |||
Dividends |
2,698 | |||
Other |
40,741 | |||
|
|
|||
Total assets |
|
14,949,494
|
| |
|
||||
Liabilities |
||||
Bank overdraft |
61 | |||
|
||||
Payables and other liabilities: |
||||
Investments purchased |
161,211 | |||
Legal, auditing and other professional fees |
16,861 | |||
Distribution and service plan fees |
2,963 | |||
Shareholder communications |
639 | |||
Trustees compensation |
38 | |||
Shares of beneficial interest redeemed |
31 | |||
Other | 71 | |||
|
|
|||
Total liabilities |
|
181,875
|
| |
|
||||
Net Assets |
$ | 14,767,619 | ||
|
|
|||
|
||||
Composition of Net Assets |
||||
Par value of shares of beneficial interest |
$ | 1,386 | ||
|
||||
Additional paid-in capital |
14,246,100 | |||
|
||||
Accumulated net investment loss |
(8,476) | |||
|
||||
Accumulated net realized loss on investments and foreign currency transactions |
(107,945) | |||
|
||||
Net unrealized appreciation on investments and translation of assets and liabilities denominated in foreign currencies | 636,554 | |||
|
|
|||
Net Assets |
$ | 14,767,619 | ||
|
|
15 OPPENHEIMER SMALL CAP VALUE FUND
STATEMENT OF ASSETS AND LIABILITIES Unaudited / Continued
|
||||
Net Asset Value Per Share |
||||
Class A Shares: | ||||
Net asset value and redemption price per share (based on net assets of $12,091,350 and 1,135,121 shares of beneficial interest outstanding) | $ | 10.65 | ||
Maximum offering price per share (net asset value plus sales charge of 5.75% of offering price) | $ | 11.30 | ||
|
||||
Class C Shares: | ||||
Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $1,373,683 and 129,089 shares of beneficial interest outstanding) | $ | 10.64 | ||
|
||||
Class I Shares: | ||||
Net asset value, redemption price and offering price per share (based on net assets of $10,649 and 1,000 shares of beneficial interest outstanding) | $ | 10.65 | ||
|
||||
Class R Shares: | ||||
Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $829,969 and 77,831 shares of beneficial interest outstanding) | $ | 10.66 | ||
|
||||
Class Y Shares: | ||||
Net asset value, redemption price and offering price per share (based on net assets of $461,968 and 43,333 shares of beneficial interest outstanding) | $ | 10.66 |
See accompanying Notes to Financial Statements.
16 OPPENHEIMER SMALL CAP VALUE FUND
STATEMENT OF OPERATIONS For the Six Months Ended October 31, 2016 Unaudited
|
||||
Investment Income |
||||
Dividends: |
||||
Unaffiliated companies (net of foreign withholding taxes of $151) |
$ | 100,198 | ||
Affiliated companies |
1,276 | |||
|
||||
Interest |
32 | |||
|
|
|||
Total investment income |
101,506 | |||
|
||||
Expenses |
||||
Management fees |
43,559 | |||
|
||||
Distribution and service plan fees: |
||||
Class A |
4,708 | |||
Class C |
4,777 | |||
Class R |
1,526 | |||
|
||||
Transfer and shareholder servicing agent fees: |
||||
Class A |
9,908 | |||
Class C | 1,054 | |||
Class I | 2 | |||
Class R | 677 | |||
Class Y |
328 | |||
|
||||
Shareholder communications: | ||||
Class A | 1,698 | |||
Class C | 190 | |||
Class R | 166 | |||
Class Y | 19 | |||
|
||||
Legal, auditing and other professional fees | 19,376 | |||
|
||||
Registration fees | 16,466 | |||
|
||||
Custodian fees and expenses | 1,239 | |||
|
||||
Trustees compensation | 98 | |||
|
||||
Other | 501 | |||
|
|
|||
Total expenses | 106,292 | |||
Less waivers and reimbursements of expenses | (34,259) | |||
|
|
|||
Net expenses |
|
72,033
|
| |
|
||||
Net Investment Income |
29,473 | |||
|
||||
Realized and Unrealized Gain (Loss) |
||||
Net realized loss on: | ||||
Investments from unaffiliated companies | (39,005) | |||
Foreign currency transactions | (337) | |||
|
|
|||
Net realized loss |
(39,342) | |||
|
||||
Net change in unrealized appreciation/depreciation on: | ||||
Investments | 432,476 | |||
Translation of assets and liabilities denominated in foreign currencies | (20,064) | |||
|
|
|||
Net change in unrealized appreciation/depreciation |
|
412,412
|
| |
|
||||
Net Increase in Net Assets Resulting from Operations |
$ | 402,543 | ||
|
|
See accompanying Notes to Financial Statements.
17 OPPENHEIMER SMALL CAP VALUE FUND
STATEMENTS OF CHANGES IN NET ASSETS
Six Months Ended October 31, 2016 (Unaudited) |
Period Ended April 29, 20161,2 |
|||||||
|
||||||||
Operations |
||||||||
Net investment income |
$ | 29,473 | $ | 20,212 | ||||
|
||||||||
Net realized loss |
(39,342 | ) | (68,555) | |||||
|
||||||||
Net change in unrealized appreciation/depreciation |
412,412 | 224,142 | ||||||
|
|
|||||||
Net increase in net assets resulting from operations |
402,543 | 175,799 | ||||||
|
||||||||
Dividends and/or Distributions to Shareholders |
||||||||
Dividends from net investment income: |
||||||||
Class A |
(33,875 | ) | (21,834) | |||||
Class C |
(221 | ) | (300) | |||||
Class I |
(63 | ) | (49) | |||||
Class R |
(1,148 | ) | (149) | |||||
Class Y |
(1,339 | ) | (710) | |||||
|
|
|||||||
|
(36,646
|
)
|
|
(23,042)
|
| |||
|
||||||||
Beneficial Interest Transactions |
||||||||
Net increase in net assets resulting from beneficial interest transactions: |
||||||||
Class A |
5,862,396 | 5,745,895 | ||||||
Class C |
1,054,885 | 258,928 | ||||||
Class I |
| | ||||||
Class R |
602,932 | 187,821 | ||||||
Class Y |
301,917 | 134,191 | ||||||
|
|
|||||||
7,822,130 | 6,326,835 | |||||||
|
||||||||
Net Assets |
||||||||
Total increase |
8,188,027 | 6,479,592 | ||||||
|
||||||||
Beginning of period |
6,579,592 | 100,0003 | ||||||
|
|
|||||||
End of period (including accumulated net investment loss of $8,476 and $1,303, respectively) | $ | 14,767,619 | $ | 6,579,592 | ||||
|
|
1. For the period from December 7, 2015 (commencement of operations) to April 29, 2016.
2. Represents the last business day of the Funds reporting period.
3. Reflects the value of the Managers seed money invested on October 14, 2015.
See accompanying Notes to Financial Statements.
18 OPPENHEIMER SMALL CAP VALUE FUND
FINANCIAL HIGHLIGHTS |
Class A | Six Months Ended October 31, 2016 (Unaudited) |
Period Ended April 29, 2016 1,2 |
||||||
|
||||||||
Per Share Operating Data |
||||||||
Net asset value, beginning of period |
$10.10 | $10.00 | ||||||
|
||||||||
Income (loss) from investment operations: | ||||||||
Net investment income3 |
0.03 | 0.04 | ||||||
Net realized and unrealized gain |
0.56 | 0.10 | ||||||
|
|
|
|
|||||
Total from investment operations |
0.59 | 0.14 | ||||||
|
||||||||
Dividends and/or distributions to shareholders: |
||||||||
Dividends from net investment income |
(0.04) | (0.04) | ||||||
|
||||||||
Net asset value, end of period |
$10.65 | $10.10 | ||||||
|
|
|
|
|||||
|
||||||||
Total Return, at Net Asset Value4 |
5.86% | 1.40% | ||||||
|
||||||||
Ratios/Supplemental Data |
||||||||
Net assets, end of period (in thousands) |
$12,091 | $5,922 | ||||||
|
||||||||
Average net assets (in thousands) |
$8,977 | $5,052 | ||||||
|
||||||||
Ratios to average net assets:5 |
||||||||
Net investment income |
0.63% | 0.98% | ||||||
Total expenses6 |
1.86% | 2.86% | ||||||
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses |
1.25% | 1.25% | ||||||
|
||||||||
Portfolio turnover rate |
27% | 22% |
1. For the period from December 7, 2015 (commencement of operations) to April 29, 2016.
2. Represents the last business day of the Funds reporting period.
3. Per share amounts calculated based on the average shares outstanding during the period.
4. Assumes an initial 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 less than one full year. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
5. Annualized for periods less than one full year.
6. Total expenses including indirect expenses from affiliated fund fees and expenses were as follows:
Six Months Ended October 31, 2016 | 1.87% | |||||
Period Ended April 29, 2016 | 2.87% |
See accompanying Notes to Financial Statements.
19 OPPENHEIMER SMALL CAP VALUE FUND
FINANCIAL HIGHLIGHTS Continued |
Class C | Six Months Ended October 31, 2016 (Unaudited) |
Period Ended April 29, 2016 1,2 |
||||||
|
||||||||
Per Share Operating Data | ||||||||
Net asset value, beginning of period |
$10.09 | $10.00 | ||||||
|
||||||||
Income (loss) from investment operations: |
||||||||
Net investment loss3 |
(0.01) | (0.02) | ||||||
Net realized and unrealized gain |
0.56 | 0.13 | ||||||
|
|
|||||||
Total from investment operations |
0.55 | 0.11 | ||||||
|
||||||||
Dividends and/or distributions to shareholders: |
||||||||
Dividends from net investment income |
(0.00)4 | (0.02) | ||||||
|
||||||||
Net asset value, end of period |
$10.64 | $10.09 | ||||||
|
|
|||||||
|
||||||||
Total Return, at Net Asset Value5 | 5.49% | 1.07% | ||||||
|
||||||||
Ratios/Supplemental Data | ||||||||
Net assets, end of period (in thousands) |
$1,374 | $289 | ||||||
|
||||||||
Average net assets (in thousands) |
$958 | $123 | ||||||
|
||||||||
Ratios to average net assets:6 |
||||||||
Net investment loss |
(0.20)% | (0.46)% | ||||||
Total expenses7 |
2.66% | 3.97% | ||||||
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses |
1.98% | 1.96% | ||||||
|
||||||||
Portfolio turnover rate |
27% | 22% |
1. For the period from December 7, 2015 (commencement of operations) to April 29, 2016.
2. Represents the last business day of the Funds reporting period.
3. Per share amounts calculated based on the average shares outstanding during the period.
4. Less than $0.005 per share.
5. Assumes an initial 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 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.
6. Annualized for periods less than one full year.
7. Total expenses including indirect expenses from affiliated fund fees and expenses were as follows:
Six Months Ended October 31, 2016 | 2.67% | |||||
Period Ended April 29, 2016 | 3.98% |
See accompanying Notes to Financial Statements.
20 OPPENHEIMER SMALL CAP VALUE FUND
Class I | Six Months Ended October 31, 2016 (Unaudited) |
Period Ended April 29, 2016 1,2 |
||||||
|
||||||||
Per Share Operating Data | ||||||||
Net asset value, beginning of period |
$10.10 | $10.00 | ||||||
|
||||||||
Income (loss) from investment operations: |
||||||||
Net investment income3 |
0.07 | 0.04 | ||||||
Net realized and unrealized gain |
0.54 | 0.11 | ||||||
|
|
|||||||
Total from investment operations |
0.61 | 0.15 | ||||||
|
||||||||
Dividends and/or distributions to shareholders: |
||||||||
Dividends from net investment income |
(0.06) | (0.05) | ||||||
|
||||||||
Net asset value, end of period |
$10.65 | $10.10 | ||||||
|
|
|||||||
|
||||||||
Total Return, at Net Asset Value4 | 6.08% | 1.50% | ||||||
|
||||||||
Ratios/Supplemental Data | ||||||||
Net assets, end of period (in thousands) |
$11 | $10 | ||||||
|
||||||||
Average net assets (in thousands) |
$11 | $9 | ||||||
|
||||||||
Ratios to average net assets:5 |
||||||||
Net investment income |
1.26% | 0.98% | ||||||
Total expenses6 |
1.59% | 2.47% | ||||||
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses |
0.93% | 0.93% | ||||||
|
||||||||
Portfolio turnover rate |
27% | 22% |
1. For the period from December 7, 2015 (commencement of operations) to April 29, 2016.
2. Represents the last business day of the Funds reporting period.
3. Per share amounts calculated based on the average shares outstanding during the period.
4. Assumes an initial 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 less than one full year. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
5. Annualized for periods less than one full year.
6. Total expenses including indirect expenses from affiliated fund fees and expenses were as follows:
Six Months Ended October 31, 2016 | 1.60% | |||||
Period Ended April 29, 2016 | 2.48% |
See accompanying Notes to Financial Statements.
21 OPPENHEIMER SMALL CAP VALUE FUND
FINANCIAL HIGHLIGHTS Continued |
Class R | Six Months Ended October 31, 2016 (Unaudited) |
Period Ended April 29, 2016 1,2 |
||||||
|
||||||||
Per Share Operating Data | ||||||||
Net asset value, beginning of period |
$10.10 | $10.00 | ||||||
|
||||||||
Income (loss) from investment operations: |
||||||||
Net investment income (loss)3 |
0.02 | (0.00)4 | ||||||
Net realized and unrealized gain |
0.56 | 0.13 | ||||||
|
|
|||||||
Total from investment operations |
0.58 | 0.13 | ||||||
|
||||||||
Dividends and/or distributions to shareholders: |
||||||||
Dividends from net investment income |
(0.02) | (0.03) | ||||||
|
||||||||
Net asset value, end of period |
$10.66 | $10.10 | ||||||
|
|
|||||||
|
||||||||
Total Return, at Net Asset Value5 | 5.76% | 1.27% | ||||||
|
||||||||
Ratios/Supplemental Data | ||||||||
Net assets, end of period (in thousands) |
$830 | $205 | ||||||
|
||||||||
Average net assets (in thousands) |
$613 | $57 | ||||||
|
||||||||
Ratios to average net assets:6 |
||||||||
Net investment income (loss) |
0.30% | (0.03)% | ||||||
Total expenses7 |
2.18% | 3.71% | ||||||
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses |
1.50% | 1.45% | ||||||
|
||||||||
Portfolio turnover rate |
27% | 22% |
1. For the period from December 7, 2015 (commencement of operations) to April 29, 2016.
2. Represents the last business day of the Funds reporting period.
3. Per share amounts calculated based on the average shares outstanding during the period.
4. Less than $0.005 per share.
5. Assumes an initial 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 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.
6. Annualized for periods less than one full year.
7. Total expenses including indirect expenses from affiliated fund fees and expenses were as follows:
Six Months Ended October 31, 2016 |
2.19 | % | ||||||
Period Ended April 29, 2016 |
3.72 | % |
See accompanying Notes to Financial Statements.
22 OPPENHEIMER SMALL CAP VALUE FUND
Class Y | Six Months Ended October 31, 2016 (Unaudited) |
Period Ended April 29, 2016 1,2 |
||||||
|
||||||||
Per Share Operating Data | ||||||||
Net asset value, beginning of period |
$10.10 | $ | 10.00 | |||||
|
||||||||
Income (loss) from investment operations: |
||||||||
Net investment income3 |
0.04 | 0.05 | ||||||
Net realized and unrealized gain |
0.57 | 0.09 | ||||||
|
|
|||||||
Total from investment operations |
0.61 | 0.14 | ||||||
|
||||||||
Dividends and/or distributions to shareholders: |
||||||||
Dividends from net investment income |
(0.05) | (0.04) | ||||||
|
||||||||
Net asset value, end of period |
$10.66 | $10.10 | ||||||
|
|
|||||||
|
||||||||
Total Return, at Net Asset Value4 | 6.05% | 1.44% | ||||||
|
||||||||
Ratios/Supplemental Data | ||||||||
Net assets, end of period (in thousands) |
$462 | $154 | ||||||
|
||||||||
Average net assets (in thousands) |
$298 | $137 | ||||||
|
||||||||
Ratios to average net assets:5 |
||||||||
Net investment income |
0.75% | 1.14% | ||||||
Total expenses6 |
1.69% | 2.67% | ||||||
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses |
1.00% | 1.00% | ||||||
|
||||||||
Portfolio turnover rate |
27% | 22% |
1. For the period from December 7, 2015 (commencement of operations) to April 29, 2016.
2. Represents the last business day of the Funds reporting period.
3. Per share amounts calculated based on the average shares outstanding during the period.
4. Assumes an initial 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 less than one full year. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
5. Annualized for periods less than one full year.
6. Total expenses including indirect expenses from affiliated fund fees and expenses were as follows:
Six Months Ended October 31, 2016 |
1.70 | % | ||||||
Period Ended April 29, 2016 |
2.68 | % |
See accompanying Notes to Financial Statements.
23 OPPENHEIMER SMALL CAP VALUE FUND
NOTES TO FINANCIAL STATEMENTS October 31, 2016 Unaudited
1. Organization
Oppenheimer Small Cap Value Fund (the Fund) is a diversified open-end management investment company registered under the Investment Company Act of 1940, (1940 Act), as amended. The Funds investment objective is to seek capital appreciation. The Funds investment adviser is OFI Global Asset Management, Inc. (OFI Global or the Manager), a wholly-owned subsidiary of OppenheimerFunds, Inc. (OFI or the Sub-Adviser). The Manager has entered into a sub-advisory agreement with OFI. The Fund commenced operations on December 7, 2015.
The Fund offers Class A, Class C, Class I, Class R 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 C and Class R shares are sold without a front-end sales charge but may be subject to a CDSC. Class R shares are sold only through retirement plans. Retirement plans that offer Class R shares may impose charges on those accounts. Class I and Class Y shares are sold to certain institutional investors or intermediaries without either a front-end sales charge or a CDSC, however, the intermediaries may impose charges on their accountholders who beneficially own Class I and Class Y shares. 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, C and R shares have separate distribution and/or service plans under which they pay fees. Class I and Class Y shares do not pay such fees.
The following is a summary of significant accounting policies followed in the Funds preparation of financial statements in accordance with accounting principles generally accepted in the United States (U.S. GAAP).
2. Significant Accounting Policies
Security Valuation. All investments in securities are recorded at their estimated fair value, as described in Note 3.
Foreign Currency Translation. The Funds 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 trading. Foreign exchange rates may be valued primarily using a reliable bank, dealer or service authorized by the Board of Trustees.
Reported net realized gains and losses from foreign currency transactions arise from sales of portfolio securities, sales and maturities of short-term securities, sales of foreign currencies, exchange rate fluctuations 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 Funds books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized appreciation and depreciation on the translation of assets and
24 OPPENHEIMER SMALL CAP VALUE FUND
2. Significant Accounting Policies (Continued)
liabilities denominated in foreign currencies 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 Funds Statement of Operations.
Allocation of Income, Expenses, Gains and Losses. Income, expenses (other than those attributable to a specific class), gains and losses are allocated on a daily basis to each class of shares based upon the relative proportion of net assets represented by such class. Operating expenses directly attributable to a specific class are charged against the operations of that class.
Dividends and Distributions to Shareholders. Dividends and distributions to shareholders, which are determined in accordance with income tax regulations and may differ from U.S. GAAP, are recorded on the ex-dividend date. Income distributions, if any, are declared and paid quarterly. Capital gain distributions, if any, are declared and paid annually or at other times as deemed necessary by the Manager.
The tax character of distributions is determined as of the Funds fiscal year end. Therefore, a portion of the Funds distributions made to shareholders prior to the Funds fiscal year end may ultimately be categorized as a tax return of capital.
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 is recognized on an accrual basis. Discount and premium, which are included in interest income on the Statement of Operations, are amortized or accreted daily.
Return of Capital Estimates. Distributions received from the Funds investments in Master Limited Partnerships (MLPs) and Real Estate Investments Trusts (REITs), generally are comprised of income and return of capital. The Fund records investment income and return of capital based on estimates. Such estimates are based on historical information available from each MLP, REIT and other industry sources. These estimates may subsequently be revised based on information received from MLPs and REITs after their tax reporting periods are concluded.
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
25 OPPENHEIMER SMALL CAP VALUE FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued |
2. Significant Accounting Policies (Continued)
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 Funds organizational documents provide current and former Trustees 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 Funds 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.
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 to shareholders. Therefore, no federal income or excise tax provision is required. The Fund files income tax returns in U.S. federal and applicable state jurisdictions. The statute of limitations on the Funds tax return filings generally remains open for the three preceding fiscal reporting period ends. The Fund has analyzed its tax positions for the fiscal year ended April 29, 2016, including open tax years, and does not believe there are any uncertain tax positions requiring recognition in the Funds financial statements.
During the fiscal year ended April 29, 2016, the Fund did not utilize any capital loss carryforward to offset capital gains realized in that fiscal year. Details of the fiscal year ended April 29, 2016 capital loss carryforwards are included in the table below. Capital loss carryforwards with no expiration, if any, must be utilized prior to those with expiration dates. Capital losses with no expiration will be carried forward to future years if not offset by gains.
Expiring | ||||
No expiration |
$ | 50,711 |
At period end, it is estimated that the capital loss carryforwards would be $90,053, which will not expire. The estimated capital loss carryforward represents the carryforward as of the end of the last fiscal year, increased or decreased by capital losses or gains realized in the first six months of the current fiscal year. During the reporting period, it is estimated that the Fund will not utilize any capital loss carryforward to offset realized capital gains.
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 are determined in accordance with federal income tax requirements, which may differ from the character of net investment income or net realized gains presented in those financial statements in accordance with U.S. GAAP. Also, due
26 OPPENHEIMER SMALL CAP VALUE FUND
2. Significant Accounting Policies (Continued)
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.
The aggregate cost of securities and other investments and the composition of unrealized appreciation and depreciation of securities and other investments for federal income tax purposes at period end are noted in the following table. The primary difference between book and tax appreciation or depreciation of securities and other investments, if applicable, is attributable to the tax deferral of losses or tax realization of financial statement unrealized gain or loss.
Federal tax cost of securities |
$ | 14,062,862 | ||
|
|
|||
Gross unrealized appreciation |
$ | 1,126,595 | ||
Gross unrealized depreciation |
(490,041) | |||
|
|
|||
Net unrealized appreciation |
$ | 636,554 | ||
|
|
Use of Estimates. The preparation of financial statements in conformity with U.S. GAAP 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 increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.
3. Securities Valuation
The Fund calculates the net asset value of its shares as of 4:00 P.M. Eastern time, on each day the New York Stock Exchange (the Exchange) is open for trading, except in the case of a scheduled early closing of the Exchange, in which case the Fund will calculate net asset value of the shares as of the scheduled early closing time of the Exchange.
The Funds Board has adopted procedures for the valuation of the Funds securities and has delegated the day-to-day responsibility for valuation determinations under those procedures to the Manager. The Manager has established a Valuation Committee which is responsible for determining a fair valuation for any security for which market quotations are not readily available. The Valuation Committees fair valuation determinations are subject to review, approval and ratification by the Funds Board at its next regularly scheduled meeting covering the calendar quarter in which the fair valuation was determined.
Valuation Methods and Inputs
Securities are valued using unadjusted quoted market prices, when available, as supplied primarily by third party pricing services or dealers.
The following methodologies are used to determine the market value or the fair value of the types of securities described below:
Securities traded on a registered U.S. securities exchange (including exchange-traded derivatives other than futures and futures options) are valued based on the last sale price of the security reported on the principal exchange on which it is traded, prior to the time when the Funds assets are valued. In the absence of a sale, the security is valued at the
27 OPPENHEIMER SMALL CAP VALUE FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued |
3. Securities Valuation (Continued)
mean between the bid and asked price on the principal exchange or, if not available from the principal exchange, obtained from two dealers. If bid and asked prices are not available from either the exchange or two dealers, the security is valued by using one of the following methodologies (listed in order of priority): (1) a bid from the principal exchange, (2) the mean between the bid and asked price as provided by a single dealer, or (3) a bid from a single dealer. A security of a foreign issuer traded on a foreign exchange, but not listed on a registered U.S. securities exchange, is valued based on the last sale price on the principal exchange on which the security is traded, as identified by the third party pricing service used by the Manager, prior to the time when the Funds assets are valued. If the last sale price is unavailable, the security is valued at the most recent official closing price on the principal exchange on which it is traded. If the last sales price or official closing price for a foreign security is not available, the security is valued at the mean between the bid and asked price per the exchange or, if not available from the exchange, obtained from two dealers. If bid and asked prices are not available from either the exchange or two dealers, the security is valued by using one of the following methodologies (listed in order of priority): (1) a bid from the exchange, (2) the mean between the bid and asked price as provided by a single dealer, or (3) a bid from a single dealer.
Shares of a registered investment company that are not traded on an exchange are valued at that investment companys net asset value per share.
Corporate and government debt securities (of U.S. or foreign issuers) and municipal debt securities, event-linked bonds, loans, mortgage-backed securities, collateralized mortgage obligations, and asset-backed securities are valued at the mean between the bid and asked prices utilizing evaluated prices obtained from third party pricing services or broker-dealers who may use matrix pricing methods to determine the evaluated prices.
Short-term money market type debt securities with a remaining maturity of sixty days or less are valued at cost adjusted by the amortization of discount or premium to maturity (amortized cost), which approximates market value. Short-term debt securities with a remaining maturity in excess of sixty days are valued at the mean between the bid and asked prices utilizing evaluated prices obtained from third party pricing services or broker-dealers.
A description of the standard inputs that may generally be considered by the third party pricing vendors in determining their evaluated prices is provided below.
Security Type |
Standard inputs generally considered by third-party pricing vendors | |
Corporate debt, government debt, municipal, mortgage- backed and asset-backed securities |
Reported trade data, broker-dealer price quotations, benchmark yields, issuer spreads on comparable securities, the credit quality, yield, maturity, and other appropriate factors. | |
Loans |
Information obtained from market participants regarding reported trade data and broker-dealer price quotations. | |
Event-linked bonds |
Information obtained from market participants regarding reported trade data and broker-dealer price quotations. |
If a market value or price cannot be determined for a security using the methodologies
28 OPPENHEIMER SMALL CAP VALUE FUND
3. Securities Valuation (Continued)
described above, or if, in the good faith opinion of the Manager, the market value or price obtained does not constitute a readily available market quotation, or a significant event has occurred that would materially affect the value of the security, the security is fair valued either (i) by a standardized fair valuation methodology applicable to the security type or the significant event as previously approved by the Valuation Committee and the Funds Board or (ii) as determined in good faith by the Managers Valuation Committee. The Valuation Committee considers all relevant facts that are reasonably available, through either public information or information available to the Manager, when determining the fair value of a security. Fair value determinations by the Manager are subject to review, approval and ratification by the Funds Board at its next regularly scheduled meeting covering the calendar quarter in which the fair valuation was determined. Those fair valuation standardized methodologies include, but are not limited to, valuing securities at the last sale price or initially at cost and subsequently adjusting the value based on: changes in company specific fundamentals, changes in an appropriate securities index, or changes in the value of similar securities which may be further adjusted for any discounts related to security-specific resale restrictions. When possible, such methodologies use observable market inputs such as unadjusted quoted prices of similar securities, observable interest rates, currency rates and yield curves. The methodologies used for valuing securities are not necessarily an indication of the risks associated with investing in those securities nor can it be assured that the Fund can obtain the fair value assigned to a security if it were to sell the security.
To assess the continuing appropriateness of security valuations, the Manager, or its third party service provider who is subject to oversight by the Manager, regularly compares prior day prices, prices on comparable securities, and sale prices to the current day prices and challenges those prices exceeding certain tolerance levels with the third party pricing service or broker source. For those securities valued by fair valuations, whether through a standardized fair valuation methodology or a fair valuation determination, the Valuation Committee reviews and affirms the reasonableness of the valuations based on such methodologies and fair valuation determinations on a regular basis after considering all relevant information that is reasonably available.
Classifications
Each investment asset or liability of the Fund is assigned a level at measurement date based on the significance and source of the inputs to its valuation. Various data inputs are used in determining the value of each of the Funds investments as of the reporting period end. These data inputs are categorized in the following hierarchy under applicable financial accounting standards:
1) Level 1-unadjusted quoted prices in active markets for identical assets or liabilities (including securities actively traded on a securities exchange)
2) Level 2-inputs other than unadjusted quoted prices that are observable for the asset or liability (such as unadjusted quoted prices for similar assets and market corroborated inputs such as interest rates, prepayment speeds, credit risks, etc.)
3) Level 3-significant unobservable inputs (including the Managers own judgments about
29 OPPENHEIMER SMALL CAP VALUE FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued |
3. Securities Valuation (Continued)
assumptions that market participants would use in pricing the asset or liability).
The inputs used for valuing securities are not necessarily an indication of the risks associated with investing in those securities.
The Fund classifies each of its investments in investment companies which are publicly offered as Level 1. Investment companies that are not publicly offered are measured using net asset value as a practical expedient, and are not classified in the fair value hierarchy.
The table below categorizes amounts that are included in the Funds Statement of Assets and Liabilities at period end based on valuation input level:
Level 1 Unadjusted Quoted Prices |
Level 2 Other Significant Observable Inputs |
Level 3 Significant Unobservable Inputs |
Value | |||||||||||||
Assets Table |
||||||||||||||||
Investments, at Value: |
||||||||||||||||
Common Stocks |
||||||||||||||||
Consumer Discretionary |
$ | 1,709,969 | $ | | $ | | $ | 1,709,969 | ||||||||
Consumer Staples |
835,515 | | | 835,515 | ||||||||||||
Energy |
803,661 | | | 803,661 | ||||||||||||
Financials |
4,376,396 | | | 4,376,396 | ||||||||||||
Health Care |
552,686 | 194,754 | | 747,440 | ||||||||||||
Industrials |
1,977,830 | | | 1,977,830 | ||||||||||||
Information Technology |
1,795,168 | | | 1,795,168 | ||||||||||||
Materials |
1,113,731 | | | 1,113,731 | ||||||||||||
Utilities |
571,168 | | | 571,168 | ||||||||||||
Investment Company |
768,538 | | | 768,538 | ||||||||||||
|
|
|||||||||||||||
Total Assets |
$ | 14,504,662 | $ | 194,754 | $ | | $ | 14,699,416 | ||||||||
|
|
Forward currency exchange contracts and futures contracts, if any, are reported at their unrealized appreciation/depreciation at measurement date, which represents the change in the contracts value from trade date. All additional assets and liabilities included in the above table are reported at their market value at measurement date.
4. Investments and Risks
Investments in Affiliated Funds. The Fund is permitted to invest in other mutual funds advised by the Manager (Affiliated Funds). Affiliated Funds are open-end management investment companies registered under the 1940 Act, as amended. The Manager is the investment adviser of, and the Sub-Adviser provides investment and related advisory services to, the Affiliated Funds. When applicable, the Funds investments in Affiliated Funds are included in the Statement of Investments. Shares of Affiliated Funds are valued at their net asset value per share. As a shareholder, the Fund is subject to its proportional share of the Affiliated Funds expenses, including their management fee. The Manager will waive fees and/
30 OPPENHEIMER SMALL CAP VALUE FUND
4. Investments and Risks (Continued)
or reimburse Fund expenses in an amount equal to the indirect management fees incurred through the Funds investment in the Affiliated Funds.
Each of the Affiliated Funds in which the Fund invests has its own investment risks, and those risks can affect the value of the Funds investments and therefore the value of the Funds shares. To the extent that the Fund invests more of its assets in one Affiliated Fund than in another, the Fund will have greater exposure to the risks of that Affiliated Fund.
Investments in Money Market Instruments. The Fund is permitted to invest its free cash balances in money market instruments to provide liquidity or for defensive purposes. The Fund may invest in money market instruments by investing in Class E shares of Oppenheimer Institutional Government Money Market Fund (IGMMF), formerly known as Oppenheimer Institutional Money Market Fund, which is an Affiliated Fund. IGMMF is regulated as a money market fund under the 1940 Act, as amended. The Fund may also invest in money market instruments directly or in other affiliated or unaffiliated money market funds.
Master Limited Partnerships (MLPs). MLPs issue common units that represent an equity ownership interest in a partnership and provide limited voting rights. MLP common units are registered with the Securities and Exchange Commission (SEC), and are freely tradable on securities exchanges such as the NYSE and the NASDAQ Stock Market (NASDAQ), or in the over-the-counter (OTC) market. An MLP consists of one or more general partners, who conduct the business, and one or more limited partners, who contribute capital. MLP common unit holders have a limited role in the partnerships operations and management. The Fund, as a limited partner, normally would not be liable for the debts of the MLP beyond the amounts the Fund has contributed, but would not be shielded to the same extent that a shareholder of a corporation would be. In certain circumstances creditors of an MLP would have the right to seek return of capital distributed to a limited partner. This right of an MLPs creditors would continue after the Fund sold its investment in the MLP.
Equity Security Risk. Stocks and other equity securities fluctuate in price. The value of the Funds portfolio may be affected by changes in the equity markets generally. Equity markets may experience significant short-term volatility and may fall sharply at times. Different markets may behave differently from each other and U.S. equity markets may move in the opposite direction from one or more foreign stock markets. Adverse events in any part of the equity or fixed-income markets may have unexpected negative effects on other market segments.
The prices of individual equity securities generally do not all move in the same direction at the same time and a variety of factors can affect the price of a particular companys securities. These factors may include, but are not limited to, poor earnings reports, a loss of customers, litigation against the company, general unfavorable performance of the companys sector or industry, or changes in government regulations affecting the company or its industry.
Shareholder Concentration. At period end, one shareholder owned 20% or more of the Funds total outstanding shares.
31 OPPENHEIMER SMALL CAP VALUE FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued |
4. Investments and Risks (Continued)
The shareholder is a related party of the Fund. Related parties may include, but are not limited to, the investment manager and its affiliates, affiliated broker dealers, fund of funds, and directors or employees. Related parties owned 36% of the Funds total outstanding shares at period end.
5. Market Risk Factors
The Funds investments in securities and/or financial derivatives may expose the Fund to various market risk factors:
Commodity Risk. Commodity risk relates to the change in value of commodities or commodity indexes as they relate to increases or decreases in the commodities market.
Commodities are physical assets that have tangible properties. Examples of these types of assets are crude oil, heating oil, metals, livestock, and agricultural products.
Credit Risk. Credit risk relates to the ability of the issuer of debt to meet interest and principal payments, or both, as they come due. In general, lower-grade, higher-yield debt securities are subject to credit risk to a greater extent than lower-yield, higher-quality securities.
Equity Risk. Equity risk relates to the change in value of equity securities as they relate to increases or decreases in the general market.
Foreign Exchange Rate Risk. Foreign exchange rate risk relates to the change in the U.S. dollar value of a security held that is denominated in a foreign currency. The U.S. dollar value of a foreign currency denominated security will decrease as the dollar appreciates against the currency, while the U.S. dollar value will increase as the dollar depreciates against the currency.
Interest Rate Risk. Interest rate risk refers to the fluctuations in value of fixed-income securities resulting from the inverse relationship between price and yield. For example, an increase in general interest rates will tend to reduce the market value of already issued fixed-income investments, and a decline in general interest rates will tend to increase their value. In addition, debt securities with longer maturities, which tend to have higher yields, are subject to potentially greater fluctuations in value from changes in interest rates than obligations with shorter maturities.
Volatility Risk. Volatility risk refers to the magnitude of the movement, but not the direction of the movement, in a financial instruments price over a defined time period. Large increases or decreases in a financial instruments price over a relative time period typically indicate greater volatility risk, while small increases or decreases in its price typically indicate lower volatility risk.
6. Shares of Beneficial Interest
The Fund has authorized an unlimited number of $0.001 par value shares of beneficial interest of each class. Transactions in shares of beneficial interest were as follows:
32 OPPENHEIMER SMALL CAP VALUE FUND
6. Shares of Beneficial Interest (Continued)
Six Months Ended October 31, 2016 | Period Ended April 29, 20161,2,3 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
Class A |
||||||||||||||||
Sold |
577,704 | $ | 6,173,810 | 588,992 | $ | 5,828,232 | ||||||||||
Dividends and/or distributions reinvested |
1,285 | 13,583 | 268 | 2,620 | ||||||||||||
Redeemed |
(30,392 | ) | (324,997 | ) | (8,736 | ) | (84,957) | |||||||||
Net increase |
548,597 | $ | 5,862,396 | 580,524 | $ | 5,745,895 | ||||||||||
Class C |
||||||||||||||||
Sold |
117,629 | $ | 1,237,121 | 37,181 | $ | 354,818 | ||||||||||
Dividends and/or distributions reinvested |
21 | 218 | 29 | 284 | ||||||||||||
Redeemed |
(17,178 | ) | (182,454 | ) | (9,593 | ) | (96,174) | |||||||||
Net increase |
100,472 | $ | 1,054,885 | 27,617 | $ | 258,928 | ||||||||||
Class I |
||||||||||||||||
Sold |
| $ | | | $ | | ||||||||||
Dividends and/or distributions reinvested |
| | | | ||||||||||||
Redeemed |
| | | | ||||||||||||
Net increase |
| $ | | | $ | | ||||||||||
Class R |
||||||||||||||||
Sold |
74,510 | $ | 788,562 | 20,083 | $ | 195,629 | ||||||||||
Dividends and/or distributions reinvested |
106 | 1,127 | 13 | 123 | ||||||||||||
Redeemed |
(17,099 | ) | (186,757 | ) | (782 | ) | (7,931) | |||||||||
Net increase |
57,517 | $ | 602,932 | 19,314 | $ | 187,821 | ||||||||||
Class Y |
||||||||||||||||
Sold |
32,427 | $ | 348,357 | 15,686 | $ | 148,149 | ||||||||||
Dividends and/or distributions reinvested |
122 | 1,289 | 68 | 667 | ||||||||||||
Redeemed |
(4,470 | ) | (47,729 | ) | (1,500 | ) | (14,625) | |||||||||
Net increase |
28,079 | $ | 301,917 | 14,254 | $ | 134,191 | ||||||||||
1. For the period December 7, 2015 (commencement of operations) to April 29, 2016.
2. Represents the last business day of the Funds reporting period.
3. The Fund sold 6,000 shares of Class A at a value of $60,000 and 1,000 shares of Class C, Class I, Class R and Class Y at a value of $10,000, respectively, to the Manager upon seeding of the Fund on October 14, 2015. These amounts are not reflected in the table above.
7. Purchases and Sales of Securities
The aggregate cost of purchases and proceeds from sales of securities, other than short-term obligations and investments in IGMMF, for the reporting period were as follows:
33 OPPENHEIMER SMALL CAP VALUE FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
|
7. Purchases and Sales of Securities (Continued)
Purchases | Sales | |||||||||
Investment securities |
$ | 9,933,308 | $ | 2,814,429 |
8. Fees and Other Transactions with Affiliates
Management Fees. Under the investment advisory agreement, the Fund pays the Manager a management fee based on the daily net assets of the Fund at an annual rate as shown in the following table:
Fee Schedule | ||||
Up to $500 million |
0.80% | |||
Next $500 million |
0.75 | |||
Next $4 billion |
0.70 | |||
Over $5 billion |
0.65 |
The Funds effective management fee for the reporting period was 0.80% of average annual net assets before any applicable waivers.
Sub-Adviser Fees. The Manager has retained the Sub-Adviser to provide the day-to-day portfolio management of the Fund. Under the Sub-Advisory Agreement, the Manager pays the Sub-Adviser an annual fee in monthly installments, equal to a percentage of the investment management fee collected by the Manager from the Fund, which shall be calculated after any investment management fee waivers. The fee paid to the Sub-Adviser is paid by the Manager, not by the Fund.
Transfer Agent Fees. OFI Global (the Transfer Agent) serves as the transfer and shareholder servicing agent for the Fund. The Fund pays the Transfer Agent a fee based on annual net assets. Fees incurred and average net assets for each class with respect to these services are detailed in the Statement of Operations and Financial Highlights, respectively.
Sub-Transfer Agent Fees. The Transfer Agent has retained Shareholder Services, Inc., a wholly-owned subsidiary of OFI (the Sub-Transfer Agent), to provide the day-to-day transfer agent and shareholder servicing of the Fund. Under the Sub-Transfer Agency Agreement, the Transfer Agent pays the Sub-Transfer Agent an annual fee in monthly installments, equal to a percentage of the transfer agent fee collected by the Transfer Agent from the Fund, which shall be calculated after any applicable fee waivers. The fee paid to the Sub-Transfer Agent is paid by the Transfer Agent, not by the Fund.
Offering and Organizational Costs. The Manager paid all initial offering and organizational costs associated with the registration and seeding of the Fund.
Trustees Compensation. The Funds Board of Trustees (Board) has adopted a compensation deferral plan for Independent Trustees that enables Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Fund. For purposes of determining the amount owed to the Trustee under the plan, deferred
34 OPPENHEIMER SMALL CAP VALUE FUND
8. Fees and Other Transactions with Affiliates (Continued)
amounts are treated as though equal dollar amounts had been invested in shares of the Fund or in other Oppenheimer funds selected by the Trustee. The Fund purchases shares of the funds selected for deferral by the Trustee in amounts equal to his or her deemed investment, resulting in a Fund asset equal to the deferred compensation liability. Such assets are included as a component of Other within the asset section of the Statement of Assets and Liabilities. Deferral of Trustees fees under the plan will not affect the net assets of the Fund and will not materially affect the Funds assets, liabilities or net investment income per share. Amounts will be deferred until distributed in accordance with the compensation deferral plan.
Distribution and Service Plan (12b-1) Fees. Under its General Distributors Agreement with the Fund, OppenheimerFunds Distributor, Inc. (the Distributor) acts as the Funds principal underwriter in the continuous public offering of the Funds classes of shares.
Service Plan for Class A Shares. The Fund has adopted a Service Plan (the Plan) for Class A shares pursuant to Rule 12b-1 under the 1940 Act. Under the Plan, the Fund 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 daily 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 service 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.
Distribution and Service Plans for Class C and Class R Shares. The Fund has adopted Distribution and Service Plans (the Plans) for Class C and Class R shares pursuant to Rule 12b-1 under the 1940 Act to compensate the Distributor for distributing those share classes, maintaining accounts and providing shareholder services. Under the Plans, the Fund pays the Distributor an annual asset-based sales charge of 0.75% on Class C shares daily net assets and 0.25% on Class R shares daily net assets. The Fund also pays a service fee under the Plans at an annual rate of 0.25% of daily net assets. The Plans continue in effect from year to year only if the Funds Board of Trustees votes annually to approve their continuance at an in person meeting called for that purpose. Fees incurred by the Fund under the Plans are detailed in the Statement of Operations.
Sales Charges. Front-end sales charges and 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.
35 OPPENHEIMER SMALL CAP VALUE FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued |
8. Fees and Other Transactions with Affiliates (Continued)
Six Months Ended | Class A Front-End Sales Charges Retained by Distributor |
Class A Contingent Deferred Sales Charges Retained by Distributor |
Class C Contingent Deferred Sales Charges Retained by Distributor |
Class R Contingent Deferred Sales Charges Retained by Distributor |
||||||||||||
October 31, 2016 |
$7,364 | $ | $ | $ |
Waivers and Reimbursements of Expenses. The Manager has contractually agreed to waive fees and/or reimburse certain expenses so that Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses, excluding expenses incurred directly or indirectly by the Fund as a result of investments in other investment companies, wholly-owned subsidiaries and pooled investment vehicles; will not exceed 1.25% for Class A shares, 2.00% for Class C shares, 0.93% for Class I shares, 1.50% for Class R shares and 1.00% for Class Y shares. During the reporting period, the Manager waived $27,501, $3,231, $35, $2,107 and $1,044 for Class A, Class C, Class I, Class R and Class Y shares, respectively.
The Manager will waive fees and/or reimburse Fund expenses in an amount equal to the indirect management fees incurred through the Funds investment in IGMMF. During the reporting period, the Manager waived fees and/or reimbursed the Fund $341 for IGMMF management fees.
Waivers and/or reimbursements may be modified or terminated as set forth according to the terms in the prospectus.
9. Pending Litigation
In 2009, several putative class action lawsuits were filed and later consolidated before the U.S. District Court for the District of Colorado in connection with the investment performance of Oppenheimer Rochester California Municipal Fund (the California Fund), a fund advised by OppenheimerFunds, Inc. (OFI) and distributed by OppenheimerFunds Distributor, Inc. (OFDI). The plaintiffs asserted claims against OFI, OFDI and certain present and former trustees and officers of the California Fund under the federal securities laws, alleging, among other things, that the disclosure documents of the California Fund contained misrepresentations and omissions and the investment policies of the California Fund were not followed. An amended complaint and a motion to dismiss were filed, and in 2011, the court issued an order which granted in part and denied in part the defendants motion to dismiss. In October 2015, following a successful appeal by defendants and a subsequent hearing, the court granted plaintiffs motion for class certification and appointed class representatives and class counsel.
OFI and OFDI believe the suit is without merit; that it is premature to render any opinion as to the likelihood of an outcome unfavorable to them in the suit; and that no estimate can yet be made as to the amount or range of any potential loss. Furthermore, OFI believes that the
36 OPPENHEIMER SMALL CAP VALUE FUND
9. Pending Litigation (Continued)
suit should not impair the ability of OFI or OFDI to perform their respective duties to the Fund and that the outcome of the suit should not have any material effect on the operations of any of the Oppenheimer funds.
37 OPPENHEIMER SMALL CAP VALUE FUND
BOARD APPROVAL OF THE FUNDS INVESTMENT ADVISORY
AND SUB-ADVISORY AGREEMENTS Unaudited
The Fund has entered into an investment advisory agreement with OFI Global Asset Management, Inc. (OFI Global or the Adviser), a wholly-owned subsidiary of OppenheimerFunds, Inc. (OFI or the Sub-Adviser) (OFI Global and OFI together the Managers) and OFI Global has entered into a sub-advisory agreement with OFI whereby OFI provides investment sub-advisory services to the Fund (collectively, the Agreements). Each year, the Board of Trustees (the Board), including a majority of the independent Trustees, is required to determine whether to approve the terms of the Agreements and the renewal thereof. The Investment Company Act of 1940, as amended, requires that the Board request and evaluate, and that the Managers provide, such information as may be reasonably necessary to evaluate the terms of the Agreements. 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 to in-person meetings focused on this evaluation, the Board receives information throughout the year regarding Fund services, fees, expenses and performance.
The Managers and the independent consultant provided information to the Board on the following factors: (i) the nature, quality and extent of the Managers services, (ii) the comparative investment performance of the Fund and the Managers, (iii) the fees and expenses of the Fund, including comparative fee and expense information, (iv) the profitability of the Managers and their affiliates, including an analysis of the cost of providing services, (v) whether 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 Managers from their relationship with the Fund. The Board was aware that there are alternatives to retaining the Managers.
Outlined below is a summary of the principal information considered by the Board as well as the Boards conclusions.
Nature, Quality and Extent of Services. The Board considered information about the nature, quality and extent of the services provided to the Fund and information regarding the Managers key personnel who provide such services. The Managers duties include providing the Fund with the services of the portfolio manager and the Sub-Advisers investment team, who provide research, analysis and other advisory services in regard to the Funds investments; and securities trading services. OFI Global is responsible for oversight of third-party service providers; monitoring compliance with applicable Fund policies and procedures and adherence to the Funds investment restrictions; risk management; and oversight of the Sub-Adviser. OFI Global is also responsible for providing certain administrative services to the Fund. 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 Funds operations; preparing and filing reports required by the U.S. 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 Funds shares. OFI Global also provides the Fund with office space, facilities and equipment.
The Board also considered the quality of the services provided and the quality of the
38 OPPENHEIMER SMALL CAP VALUE FUND
Managers resources that are available to the Fund. The Board took account of the fact that the Sub-Adviser has over fifty 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 Managers advisory, administrative, accounting, legal, compliance and risk management services, and information the Board has received regarding the experience and professional qualifications of the Managers key 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 Eric Hewitt, the portfolio manager for the Fund, and the Sub-Advisers investment team and analysts. The Board members also considered the totality of their experiences with the Managers as directors or trustees of the Fund and other funds advised by the Managers. The Board considered information regarding the quality of services provided by affiliates of the Managers, which the Board members have become knowledgeable about through their experiences with the Managers and in connection with the renewal of the Funds service agreements. The Board concluded, in light of the Managers experience, reputation, personnel, operations and resources that the Fund benefits from the services provided under the Agreements.
Investment Performance of the Managers and the Fund. The Board considered that the Fund has not been in operation for a full calendar year.
Fees and Expenses of the Fund. The Board reviewed the fees paid to the Adviser and the other expenses borne by the Fund. The Board also considered 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 Adviser. The independent consultant provided comparative data in regard to the fees and expenses of the Fund and other retail front-end load small value funds with comparable asset levels and distribution features. The Board also considered that the Adviser has contractually agreed to waive fees and/or reimburse the Fund so that the total annual fund operating expenses, excluding certain expenses, as a percentage of average daily net assets will not exceed the following annual rates: 1.25% for Class A shares, 2.00% for Class C shares, 0.93% for Class I shares, 1.50% for Class R shares, and 1.00% for Class Y shares, and that the expense limitations may not be amended or withdrawn for one year from the date of the Funds prospectus, unless approved by the Board. The Board noted that the Funds contractual management fee and total expenses, net of waivers, were lower than its peer group median and category median.
Economies of Scale and Profits Realized by the Managers. The Board considered information regarding the Managers costs in serving as the Funds investment adviser and sub-adviser, including the costs associated with the personnel and systems necessary to manage the Fund, and information regarding the Managers profitability from their relationship with the Fund. The Board also considered that the Managers must be able to pay and retain experienced professional personnel at competitive rates to provide quality services to the Fund. The Board reviewed whether the Managers may realize economies of scale in managing and supporting the Fund. The Board noted that the Fund currently has management fee breakpoints, which are intended to share with Fund shareholders economies of scale that may exist as the Funds assets grow.
39 OPPENHEIMER SMALL CAP VALUE FUND
BOARD APPROVAL OF THE FUNDS INVESTMENT ADVISORY,
AND SUB-ADVISORY AGREEMENTS Unaudited / Continued
Other Benefits to the Managers. In addition to considering the profits realized by the Managers, the Board considered information that was provided regarding the direct and indirect benefits the Managers receive as a result of their relationship with the Fund, including compensation paid to the Managers affiliates and research provided to the Adviser in connection with permissible brokerage arrangements (soft dollar arrangements).
Conclusions. These factors were also considered by the independent Trustees meeting separately from the full Board, assisted by experienced counsel to the Fund and to the independent Trustees. Fund counsel and the independent Trustees counsel are independent of the Managers 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 Trustees, decided to continue the Agreements through September 30, 2017. In arriving at its decision, the Board did not identify any factor or factors as being more important than others, but considered all of the above information, and considered the terms and conditions of the Agreements, including the management fees, in light of all the surrounding circumstances.
40 OPPENHEIMER SMALL CAP VALUE FUND
PORTFOLIO PROXY VOTING POLICIES AND GUIDELINES;
UPDATES TO STATEMENTS OF INVESTMENTS Unaudited
The Fund has adopted Portfolio Proxy Voting Policies and Guidelines under which the Fund votes proxies relating to securities (portfolio proxies) held by the Fund. A description of the Funds Portfolio Proxy Voting Policies and Guidelines is available (i) without charge, upon request, by calling the Fund toll-free at 1.800.CALL OPP (225.5677), (ii) on the Funds website at www.oppenheimerfunds.com, and (iii) on the SECs 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 Funds voting record is available (i) without charge, upon request, by calling the Fund toll-free at 1.800.CALL OPP (225.5677), and (ii) in the Form N-PX filing on the SECs 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 Funds Form N-Q filings are available on the SECs website at www.sec.gov. Those forms may be reviewed and copied at the SECs 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.
HouseholdingDelivery of Shareholder Documents
This is to inform you about OppenheimerFunds householding policy. If more than one member of your household maintains an account in a particular fund, OppenheimerFunds will mail only one copy of the funds prospectus (or, if available, the funds summary prospectus), annual and semiannual report and privacy policy. The consolidation of these mailings, called householding, benefits your fund through reduced mailing expense, and benefits you by reducing the volume of mail you receive from OppenheimerFunds. Householding does not affect the delivery of your account statements.
Please note that we will continue to household these mailings for as long as you remain an OppenheimerFunds shareholder, unless you request otherwise. If you prefer to receive multiple copies of these materials, please call us at 1.800.CALL-OPP (225-5677). You may also notify us in writing or via email. We will begin sending you individual copies of the prospectus (or, if available, the summary prospectus), reports and privacy policy within 30 days of receiving your request to stop householding.
41 OPPENHEIMER SMALL CAP VALUE FUND
OPPENHEIMER SMALL CAP VALUE FUND
© 2016 OppenheimerFunds, Inc. All rights reserved.
42 OPPENHEIMER SMALL CAP VALUE FUND
As an Oppenheimer fund shareholder, you are entitled to know how we protect your personal information and how we limit its disclosure.
Information Sources
We obtain nonpublic personal information about our shareholders from the following sources:
● | Applications or other forms |
● | When you create a user ID and password for online account access |
● | When you enroll in eDocs Direct, our electronic document delivery service |
● | Your transactions with us, our affiliates or others |
● | Technologies on our website, including: cookies and web beacons, which are used to collect data on the pages you visit and the features you use. |
If you visit oppenheimerfunds.com and do not log on to the secure account information areas, we do not obtain any personal information about you. When you do log on to a secure area, we do obtain your user ID and password to identify you. We also use this information to provide you with products and services you have requested, to inform you about products and services that you may be interested in and assist you in other ways.
We do not collect personal information through our website unless you willingly provide it to us, either directly by email or in those areas of the website that request information. In order to update your personal information (including your mailing address, email address and phone number) you must first log on and visit your user profile.
If you have set your browser to warn you before accepting cookies, you will receive the warning message with each cookie. You can refuse cookies by turning them off in your browser. However, doing so may limit your access to certain sections of our website.
We use cookies to help us improve and manage our website. For example, cookies help us recognize new versus repeat visitors to the site, track the pages visited, and enable some special features on the website. This data helps us provide a better service for our website visitors.
Protection of Information
We do not disclose any non-public personal information (such as names on a customer list) about current or former customers to anyone, except as permitted by law.
Disclosure of Information
Copies of confirmations, account statements and other documents reporting activity in your fund accounts are made available to your financial advisor (as designated by you). We may also use details about you and your investments to help us, our financial service affiliates, or firms that jointly market their financial products and services with ours, to better serve your investment needs or suggest educational material that may be of interest to you. If this requires us to provide you with an opportunity to opt in or opt out of such information sharing with a firm not affiliated with us, you will receive notification on how to do so, before any such sharing takes place.
Right of Refusal
We will not disclose your personal information to unaffiliated third parties (except as permitted by law), unless we first offer you a reasonable opportunity to refuse or opt out of such disclosure.
43 OPPENHEIMER SMALL CAP VALUE FUND
PRIVACY POLICY NOTICE Continued
Internet Security and Encryption
In general, the email services provided by our website are encrypted and provide a secure and private means of communication with us. To protect your own privacy, confidential and/or personal information should only be communicated via email when you are advised that you are using a secure website. As a security measure, we do not include personal or account information in non-secure emails, and we advise you not to send such information to us in non-secure emails. Instead, you may take advantage of the secure features of our website to encrypt your email correspondence. To do this, you will need to use a browser that supports Secure Sockets Layer (SSL) protocol.
● | All transactions, including redemptions, exchanges and purchases, are secured by SSL and 256-bit encryption. SSL is used to establish a secure connection between your PC and OppenheimerFunds server. It transmits information in an encrypted and scrambled format. |
● | Encryption is achieved through an electronic scrambling technology that uses a key to code and then decode the data. Encryption acts like the cable converter box you may have on your television set. It scrambles data with a secret code so that no one can make sense of it while it is being transmitted. When the data reaches its destination, the same software unscrambles the data. |
● | You can exit the secure area by either closing your browser, or for added security, you can use the Log Out button before you close your browser. |
Other Security Measures
We maintain physical, electronic and procedural safeguards to protect your personal account information. Our employees and agents have access to that information only so that they may offer you products or provide services, for example, when responding to your account questions.
How You Can Help
You can also do your part to keep your account information private and to prevent unauthorized transactions. If you obtain a user ID and password for your account, safeguard that information. Also, take special precautions when accessing your account on a computer used by others.
Who We Are
This joint notice describes the privacy policies of the Oppenheimer funds, OppenheimerFunds, Inc., each of its investment adviser subsidiaries, OppenheimerFunds Distributor, Inc. and OFI Global Trust Co. It applies to all Oppenheimer fund accounts you presently have, or may open in the future, using your Social Security numberwhether or not you remain a shareholder of our funds. This notice was last updated November 2016. In the event it is updated or changed, we will post an updated notice on our website at oppenheimerfunds.com. If you have any questions about this privacy policy, write to us at P.O. Box 5270, Denver, CO 80217-5270, email us by clicking on the Contact Us section of our website at oppenheimerfunds.com or call us at 1.800.CALL OPP (225.5677).
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47 OPPENHEIMER SMALL CAP VALUE FUND
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Visit us at oppenheimerfunds.com for 24-hr access to account information and transactions or call us at 800.CALL OPP (800.225.5677) for 24-hr automated information and automated transactions. Representatives also available MonFri 8am-8pm ET. | ||
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Oppenheimer funds are distributed by OppenheimerFunds Distributor, Inc. 225 Liberty Street, New York, NY 10281-1008 © 2016 OppenheimerFunds Distributor, Inc. All rights reserved.
RS2455.001.1016 December 22, 2016 |
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.
a) Not applicable. The complete schedule of investments is included in Item 1 of this Form N-CSR.
b) 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 Funds Governance Committee Provisions with Respect to Nominations of Directors/Trustees to the Respective Boards
None
Item 11. Controls and Procedures.
Based on their evaluation of the registrants 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 10/31/2016, the registrants principal executive officer and principal financial officer found the registrants 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 registrants 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 registrants internal controls over financial reporting that occurred during the registrants second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrants 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 Small Cap Value Fund
By: | /s/ Arthur P. Steinmetz |
|||
Arthur P. Steinmetz | ||||
Principal Executive Officer | ||||
Date: | 12/14/2016 |
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/ Arthur P. Steinmetz |
|||
Arthur P. Steinmetz | ||||
Principal Executive Officer | ||||
Date: | 12/14/2016 | |||
By: | /s/ Brian S. Petersen |
|||
Brian S. Petersen | ||||
Principal Financial Officer | ||||
Date: | 12/14/2016 |
Exhibit 99.CERT
Section 302 Certifications
CERTIFICATIONS
I, Arthur P. Steinmetz, certify that:
1. | I have reviewed this report on Form N-CSR of Oppenheimer Small Cap Value Fund; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; |
4. | The registrants other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
5. | The registrants other certifying officer and I have disclosed to the registrants auditors and the audit committee of the registrants board of Trustees (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize, and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting. |
Date: 12/14/2016
/s/ Arthur P. Steinmetz |
Arthur P. Steinmetz |
Principal Executive Officer |
Exhibit 99.CERT
Section 302 Certifications
CERTIFICATIONS
I, Brian S. Petersen, certify that:
1. | I have reviewed this report on Form N-CSR of Oppenheimer Small Cap Value Fund; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; |
4. | The registrants other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
5. | The registrants other certifying officer and I have disclosed to the registrants auditors and the audit committee of the registrants board of Trustees (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize, and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting. |
Date: 12/14/2016
/s/ Brian S. Petersen |
Brian S. Petersen |
Principal Financial Officer |
EX-99.906CERT
Section 906 Certifications
CERTIFICATION PURSUANT TO 18 U.S.C SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
Arthur P. Steinmetz, Principal Executive Officer, and Brian S. Petersen, Principal Financial Officer, of Oppenheimer Small Cap Value Fund (the Registrant), each certify to the best of his knowledge that:
1. | The Registrants periodic report on Form N-CSR for the period ended 10/31/2016 (the Form N-CSR) fully complies with the requirements of Section 15(d) of the Securities Exchange Act of 1934, as amended; and |
2. | The information contained in the Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Registrant. This certification is being furnished to the Commission solely pursuant to 18 U.S.C. § 1350 and is not being filed as part of the Form N-CSR filed with the Commission. |
Principal Executive Officer | Principal Financial Officer | |||||||||||
Oppenheimer Small Cap Value Fund | Oppenheimer Small Cap Value Fund | |||||||||||
/s/ Arthur P. Steinmetz |
/s/ Brian S. Petersen |
|||||||||||
Arthur P. Steinmetz | Brian S. Petersen | |||||||||||
Date: | 12/14/2016 | Date: | 12/14/2016 |
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