N-CSR/A 1 rs0375_6855vef.txt RS0375_6855VEF UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number 811-3346 Oppenheimer Value Fund (Exact name of registrant as specified in charter) 6803 SOUTH TUCSON WAY, CENTENNIAL, COLORADO 80112-3924 (Address of principal executive offices) (Zip code) Robert G. Zack, Esq. OppenheimerFunds, Inc. 498 Seventh Avenue, New York, New York 10018 -------------------------------------------------------------------------------- (Name and address of agent for service) Registrant's telephone number, including area code: (303) 768-3200 -------------- Date of fiscal year end: October 31 Date of reporting period: October 31, 2002 - April 30, 2003 ITEM 1. REPORTS TO STOCKHOLDERS. STATEMENT OF INVESTMENTS April 30, 2003 / Unaudited Market Value Shares See Note 1 ------------------------------------------------------ Common Stocks--92.8% -------------------------------------------------------- Consumer Discretionary--19.3% -------------------------------------------------------- Hotels, Restaurants & Leisure--1.0% McDonald's Corp. 138,000 $ 2,359,800 -------------------------------------------------------- Leisure Equipment & Products--0.5% Mattel, Inc. 49,100 1,067,434 -------------------------------------------------------- Media--13.0% EchoStar Communications Corp., Cl. A 1 302,600 9,065,896 -------------------------------------------------------- General Motors Corp., Cl. H 1 731,500 8,631,700 -------------------------------------------------------- Liberty Media Corp., Cl. A 1 1,105,600 12,161,600 ------------- 29,859,196 -------------------------------------------------------- Specialty Retail--1.0% OfficeMax, Inc. 1 420,700 2,376,955 -------------------------------------------------------- Textiles & Apparel--3.8% Nike, Inc., Cl. B 160,600 8,596,918 -------------------------------------------------------- Consumer Staples--0.8% -------------------------------------------------------- Tobacco--0.8% Altria Group, Inc. 61,500 1,891,740 -------------------------------------------------------- Energy--6.6% -------------------------------------------------------- Energy Equipment & Services--1.1% Noble Corp. 1 700 21,665 -------------------------------------------------------- Schlumberger Ltd. 59,000 2,473,870 ------------- 2,495,535 -------------------------------------------------------- Oil & Gas--5.5% BP plc, ADR 325,000 12,525,500 -------------------------------------------------------- Financials--26.4% -------------------------------------------------------- Banks--8.7% Bank of New York Co., Inc. (The) 201,200 5,321,740 -------------------------------------------------------- Wachovia Corp. 191,400 7,313,394 -------------------------------------------------------- Wells Fargo Co. 150,000 7,239,000 ------------- 19,874,134 -------------------------------------------------------- Diversified Financials--8.1% Citigroup, Inc. 186,866 7,334,490 -------------------------------------------------------- Franklin Resources, Inc. 163,200 5,692,416 -------------------------------------------------------- Freddie Mac 57,600 3,335,040 -------------------------------------------------------- Merrill Lynch & Co., Inc. 55,000 2,257,750 ------------- 18,619,696 Market Value Shares See Note 1 -------------------------------------------------------- Insurance--9.6% American International Group, Inc. 41,700 $ 2,416,515 -------------------------------------------------------- Chubb Corp. 132,000 6,981,480 -------------------------------------------------------- Prudential Financial, Inc. 232,700 7,439,419 -------------------------------------------------------- Travelers Property Casualty Corp., Cl. A 3,368 54,663 -------------------------------------------------------- Travelers Property Casualty Corp., Cl. B 309,320 5,026,450 ------------- 21,918,527 -------------------------------------------------------- Health Care--5.3% -------------------------------------------------------- Health Care Providers & Services--4.4% Aetna, Inc. 185,300 9,227,940 -------------------------------------------------------- Service Corp. International 1 231,500 782,470 ------------- 10,010,410 -------------------------------------------------------- Pharmaceuticals--0.9% Pfizer, Inc. 69,160 2,126,670 -------------------------------------------------------- Industrials--18.5% -------------------------------------------------------- Aerospace & Defense--9.7% Boeing Co. 222,500 6,069,800 -------------------------------------------------------- Lockheed Martin Corp. 160,100 8,013,005 -------------------------------------------------------- Northrop Grumman Corp. 93,300 8,205,735 ------------- 22,288,540 -------------------------------------------------------- Commercial Services & Supplies--4.4% Cendant Corp. 1 698,600 9,976,008 -------------------------------------------------------- Industrial Conglomerates--0.5% Tyco International Ltd. 73,600 1,148,160 -------------------------------------------------------- Road & Rail--3.9% CNF Transportation, Inc. 295,800 8,974,572 -------------------------------------------------------- Information Technology--6.5% -------------------------------------------------------- Computers & Peripherals--1.7% Hewlett-Packard Co. 232,000 3,781,600 -------------------------------------------------------- Electronic Equipment & Instruments--4.8% Flextronics International Ltd. 1 814,500 7,126,875 7 | OPPENHEIMER VALUE FUND STATEMENT OF INVESTMENTS Unaudited / Continued Market Value Shares See Note 1 -------------------------------------------------------- Electronic Equipment & Instruments Continued Thermo Electron Corp. 1 217,000 $ 3,942,890 ------------- 11,069,765 -------------------------------------------------------- Materials--3.6% -------------------------------------------------------- Chemicals--0.5% FMC Corp. 1 53,700 973,044 -------------------------------------------------------- Monsanto Co. 13,357 232,412 ------------- 1,205,456 -------------------------------------------------------- Metals & Mining--0.5% Alcoa, Inc. 43,400 995,162 -------------------------------------------------------- Paper & Forest Products--2.6% Sappi Ltd., Sponsored ADR 482,700 5,961,345 -------------------------------------------------------- Telecommunication Services--3.0% -------------------------------------------------------- Diversified Telecommunication Services--2.0% Verizon Communi- cations, Inc. 125,500 4,691,190 -------------------------------------------------------- Wireless Telecommunication Services--1.0% Vodafone Group plc, Sponsored ADR 115,400 2,280,304 -------------------------------------------------------- Utilities--2.8% -------------------------------------------------------- Electric Utilities--2.3% Dominion Resources, Inc. 76,300 4,515,434 -------------------------------------------------------- Pepco Holdings, Inc. 42,800 735,304 ------------- 5,250,738 -------------------------------------------------------- Multi-Utilities--0.5% Equitable Resources, Inc. 30,000 1,152,600 ------------- Total Common Stocks (Cost $196,791,197) 212,497,955 Principal Market Value Amount See Note 1 -------------------------------------------------------- Short-Term Notes--2.3% Federal Home Loan Bank, 1.20%, 5/1/03 (Cost $5,200,000) $ 5,200,000 $ 5,200,000 -------------------------------------------------------- Joint Repurchase Agreements--4.4% Undivided interest of 14.44% in joint repurchase agreement (Market Value $70,406,000) with Zions Bank/ Capital Markets Group, 1.26%, dated 4/30/03, to be repurchased at $10,168,356 on 5/1/03, collateralized by U.S. Treasury Nts., 4.625%, 5/15/06, with a value of $21,007,167 and U.S. Treasury Bonds, 2%, 11/30/04, with a value of $50,899,000 (Cost $10,168,000) 10,168,000 10,168,000 -------------------------------------------------------- Total Investments, at Value (Cost $212,159,197) 99.5% 227,865,955 -------------------------------------------------------- Other Assets Net of Liabilities 0.5 1,139,429 ----------------------- Net Assets 100.0% $229,005,384 ----------------------- Footnotes to Statement of Investments 1. Non-income producing security. See accompanying Notes to Financial Statements. 8 | OPPENHEIMER VALUE FUND STATEMENT OF ASSETS AND LIABILITIES Unaudited April 30, 2003 -------------------------------------------------------------------------------- Assets Investments, at value (cost $212,159,197)-- see accompanying statement $227,865,955 -------------------------------------------------------------------------------- Cash 60,516 -------------------------------------------------------------------------------- Receivables and other assets: Investments sold 2,639,762 Shares of capital stock sold 517,752 Interest and dividends 156,557 Other 3,734 -------------- Total assets 231,244,276 -------------------------------------------------------------------------------- Liabilities Payables and other liabilities: Investments purchased 1,843,135 Shares of capital stock redeemed 159,093 Shareholder reports 86,647 Transfer and shareholder servicing agent fees 54,425 Directors' compensation 46,414 Distribution and service plan fees 44,141 Other 5,037 -------------- Total liabilities 2,238,892 -------------------------------------------------------------------------------- Net Assets $229,005,384 ============== -------------------------------------------------------------------------------- Composition of Net Assets Par value of shares of capital stock $ 14,801 -------------------------------------------------------------------------------- Additional paid-in capital 259,864,918 -------------------------------------------------------------------------------- Undistributed net investment income 101,574 -------------------------------------------------------------------------------- Accumulated net realized loss on investment transactions (46,682,667) -------------------------------------------------------------------------------- Net unrealized appreciation on investments 15,706,758 -------------- Net Assets $229,005,384 ============== 9 | OPPENHEIMER VALUE FUND STATEMENT OF ASSETS AND LIABILITIES Unaudited / Continued -------------------------------------------------------------------------------- Net Asset Value Per Share Class A Shares: Net asset value and redemption price per share (based on net assets of $156,517,797 and 10,069,262 shares of capital stock outstanding) $15.54 Maximum offering price per share (net asset value plus sales charge of 5.75% of offering price) $16.49 -------------------------------------------------------------------------------- Class B Shares: Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $48,300,277 and 3,143,074 shares of capital stock outstanding) $15.37 -------------------------------------------------------------------------------- Class C Shares: Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $19,901,129 and 1,312,913 shares of capital stock outstanding) $15.16 -------------------------------------------------------------------------------- Class N Shares: Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $2,804,673 and 182,200 shares of capital stock outstanding) $15.39 -------------------------------------------------------------------------------- Class Y Shares: Net asset value, redemption price and offering price per share (based on net assets of $1,481,508 and 93,726 shares of capital stock outstanding) $15.81 See accompanying Notes to Financial Statements. 10 | OPPENHEIMER VALUE FUND STATEMENT OF OPERATIONS Unaudited For the Six Months Ended April 30, 2003 -------------------------------------------------------------------------------- Investment Income Dividends (net of foreign withholding taxes of $26,754) $ 1,762,460 -------------------------------------------------------------------------------- Interest 79,927 ------------- Total investment income 1,842,387 -------------------------------------------------------------------------------- Expenses Management fees 673,610 -------------------------------------------------------------------------------- Distribution and service plan fees: Class A 181,108 Class B 240,300 Class C 81,524 Class N 4,779 -------------------------------------------------------------------------------- Transfer and shareholder servicing agent fees: Class A 206,763 Class B 106,605 Class C 31,752 Class N 4,097 Class Y 7,339 -------------------------------------------------------------------------------- Accounting service fees 7,500 -------------------------------------------------------------------------------- Directors' compensation 6,722 -------------------------------------------------------------------------------- Custodian fees and expenses 1,943 -------------------------------------------------------------------------------- Other 71,499 ------------- Total expenses 1,625,541 Less reduction to custodian expenses (237) Less voluntary waiver of transfer and shareholder servicing agent fees--Class B (27,783) Less voluntary waiver of transfer and shareholder servicing agent fees--Class C (3,601) Less voluntary waiver of transfer and shareholder servicing agent fees--Class N (746) Less voluntary waiver of transfer and shareholder servicing agent fees--Class Y (9,125) ------------- Net expenses 1,584,049 -------------------------------------------------------------------------------- Net Investment Income 258,338 -------------------------------------------------------------------------------- Realized and Unrealized Gain (Loss) Net realized loss on investments (including premiums on options exercised) (2,014,854) -------------------------------------------------------------------------------- Net change in unrealized appreciation on investments 12,252,790 ------------- Net realized and unrealized gain 10,237,936 -------------------------------------------------------------------------------- Net Increase in Net Assets Resulting from Operations $10,496,274 ============= See accompanying Notes to Financial Statements. 11 | OPPENHEIMER VALUE FUND STATEMENTS OF CHANGES IN NET ASSETS Six Months Year Ended Ended April 30, 2003 October 31, (Unaudited) 2002 -------------------------------------------------------------------------------- Operations Net investment income $ 258,338 $ 361,047 -------------------------------------------------------------------------------- Net realized loss (2,014,854) (27,141,607) -------------------------------------------------------------------------------- Net change in unrealized appreciation 12,252,790 10,745,185 -------------------------- Net increase (decrease) in net assets resulting from operations 10,496,274 (16,035,375) -------------------------------------------------------------------------------- Dividends and/or Distributions to Shareholders Dividends from net investment income: Class A (328,372) (135,466) Class B -- -- Class C -- -- Class N (4,026) (43) Class Y (1,634) (3,575) -------------------------------------------------------------------------------- Capital Stock Transactions Net increase (decrease) in net assets resulting from capital stock transactions: Class A 7,745,871 (14,210,177) Class B (1,207,877) (6,150,602) Class C 5,830,961 4,299,663 Class N 1,514,103 1,286,579 Class Y 332,469 563,632 -------------------------------------------------------------------------------- Net Assets Total increase (decrease) 24,377,769 (30,385,364) -------------------------------------------------------------------------------- Beginning of period 204,627,615 235,012,979 --------------------------- End of period [including undistributed net investment income of $101,574 and $177,268, respectively] $229,005,384 $204,627,615 =========================== See accompanying Notes to Financial Statements. 12 | OPPENHEIMER VALUE FUND FINANCIAL HIGHLIGHTS
Six Months Year Ended Ended April 30, 2003 Oct. 31, Class A (Unaudited) 2002 2001 2000 1999 1998 ------------------------------------------------------------------------------------------------------------- Per Share Operating Data Net asset value, beginning of period $ 14.78 $ 15.93 $ 17.06 $ 20.69 $ 20.91 $ 23.31 ------------------------------------------------------------------------------------------------------------- Income (loss) from investment operations: Net investment income .03 .07 .03 .16 .17 .16 Net realized and unrealized gain (loss) .76 (1.21) (.98) (.65) .64 .32 -------------------------------------------------------------- Total from investment operations .79 (1.14) (.95) (.49) .81 .48 ------------------------------------------------------------------------------------------------------------- Dividends and/or distributions to shareholders: Dividends from net investment income (.03) (.01) (.18) (.16) (.17) (.12) Distributions from net realized gain -- -- -- (2.98) (.86) (2.76) -------------------------------------------------------------- Total dividends and/or distributions to shareholders (.03) (.01) (.18) (3.14) (1.03) (2.88) ------------------------------------------------------------------------------------------------------------- Net asset value, end of period $15.54 $14.78 $15.93 $17.06 $20.69 $20.91 ============================================================== ------------------------------------------------------------------------------------------------------------- Total Return, at Net Asset Value 1 5.38% (7.15)% (5.60)% (2.60)% 3.60% 2.24% ------------------------------------------------------------------------------------------------------------- Ratios/Supplemental Data Net assets, end of period (in thousands) $156,518 $141,563 $166,285 $181,566 $392,483 $456,264 ------------------------------------------------------------------------------------------------------------- Average net assets (in thousands) $149,374 $166,319 $181,631 $234,840 $448,884 $442,138 ------------------------------------------------------------------------------------------------------------- Ratios to average net assets: 2 Net investment income 0.48% 0.38% 0.19% 0.66% 0.68% 0.84% Expenses 1.23% 1.22% 1.26% 1.17% 1.02% 0.98% 3 ------------------------------------------------------------------------------------------------------------- Portfolio turnover rate 67% 150% 336% 86% 135% 106%
1. Assumes an investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Sales charges are not reflected in the total returns. Total returns are not annualized for periods of less than one full year. 2. Annualized for periods of less than one full year. 3. Expense ratio has been calculated without adjustment for the reduction to custodian expenses. See accompanying Notes to Financial Statements. 13 | OPPENHEIMER VALUE FUND FINANCIAL HIGHLIGHTS Continued
Six Months Year Ended Ended April 30, 2003 Oct. 31, Class B (Unaudited) 2002 2001 2000 1999 1998 ------------------------------------------------------------------------------------------------------------- Per Share Operating Data Net asset value, beginning of period $ 14.64 $ 15.89 $ 16.99 $ 20.58 $ 20.83 $ 23.32 ------------------------------------------------------------------------------------------------------------- Income (loss) from investment operations: Net investment income (loss) (.03) (.10) (.11) (.05) (.03) .02 Net realized and unrealized gain (loss) .76 (1.15) (.97) (.56) .66 .30 -------------------------------------------------------------- Total from investment operations .73 (1.25) (1.08) (.61) .63 .32 ------------------------------------------------------------------------------------------------------------- Dividends and/or distributions to shareholders: Dividends from net investment income -- -- (.02) -- (.02) (.05) Distributions from net realized gain -- -- -- (2.98) (.86) (2.76) -------------------------------------------------------------- Total dividends and/or distributions to shareholders -- -- (.02) (2.98) (.88) (2.81) ------------------------------------------------------------------------------------------------------------- Net asset value, end of period $15.37 $14.64 $15.89 $16.99 $20.58 $20.83 ============================================================== ------------------------------------------------------------------------------------------------------------- Total Return, at Net Asset Value 1 4.99% (7.87)% (6.34)% (3.28)% 2.79% 1.47% ------------------------------------------------------------------------------------------------------------- Ratios/Supplemental Data Net assets, end of period (in thousands) $48,300 $47,323 $57,584 $64,287 $102,736 $123,260 ------------------------------------------------------------------------------------------------------------- Average net assets (in thousands) $48,464 $56,200 $65,115 $79,239 $123,616 $110,240 ------------------------------------------------------------------------------------------------------------- Ratios to average net assets: 2 Net investment income (loss) (0.31)% (0.40)% (0.57)% (0.14)% (0.08)% 0.08% Expenses, gross 2.15% 2.01% 2.01% 1.93% 1.77% 1.73% 3 Expenses, net 2.03% 4,5 2.01% 4,6 2.01% 4 1.93% 4 1.77% 4 1.73% ------------------------------------------------------------------------------------------------------------- Portfolio turnover rate 67% 150% 336% 86% 135% 106%
1. Assumes an investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Sales charges are not reflected in the total returns. Total returns are not annualized for periods of less than one full year. 2. Annualized for periods of less than one full year. 3. Expense ratio has been calculated without adjustment for the reduction to custodian expenses. 4. Reduction to custodian expenses less than 0.01%. 5. Net of voluntary waiver of transfer agent fees. 6. Voluntary waiver of transfer agent fees less than 0.01%. See accompanying Notes to Financial Statements. 14 | OPPENHEIMER VALUE FUND
Six Months Year Ended Ended April 30, 2003 Oct. 31, Class C (Unaudited) 2002 2001 2000 1999 1998 ------------------------------------------------------------------------------------------------------------- Per Share Operating Data Net asset value, beginning of period $ 14.44 $ 15.67 $ 16.77 $ 20.35 $ 20.60 $ 23.07 ------------------------------------------------------------------------------------------------------------- Income (loss) from investment operations: Net investment income (loss) .03 (.01) (.08) (.04) (.02) .01 Net realized and unrealized gain (loss) .69 (1.22) (.99) (.56) .65 .31 -------------------------------------------------------------- Total from investment operations .72 (1.23) (1.07) (.60) .63 .32 ------------------------------------------------------------------------------------------------------------- Dividends and/or distributions to shareholders: Dividends from net investment income -- -- (.03) -- (.02) (.03) Distributions from net realized gain -- -- -- (2.98) (.86) (2.76) -------------------------------------------------------------- Total dividends and/or distributions to shareholders -- -- (.03) (2.98) (.88) (2.79) ------------------------------------------------------------------------------------------------------------- Net asset value, end of period $15.16 $14.44 $15.67 $16.77 $20.35 $20.60 ============================================================== ------------------------------------------------------------------------------------------------------------- Total Return, at Net Asset Value 1 4.99% (7.85)% (6.38)% (3.27)% 2.82% 1.47% ------------------------------------------------------------------------------------------------------------- Ratios/Supplemental Data Net assets, end of period (in thousands) $19,901 $13,466 $10,494 $ 9,849 $14,582 $18,204 ------------------------------------------------------------------------------------------------------------- Average net assets (in thousands) $16,474 $12,977 $11,088 $11,975 $17,746 $15,355 ------------------------------------------------------------------------------------------------------------- Ratios to average net assets: 2 Net investment income (loss) (0.37)% (0.41)% (0.56)% (0.14)% (0.07)% 0.06% Expenses, gross 2.10% 2.00% 2.01% 1.93% 1.77% 1.73% 3 Expenses, net 2.06% 4,5 2.00% 4,6 2.01% 4 1.93% 4 1.77% 4 1.73% ------------------------------------------------------------------------------------------------------------- Portfolio turnover rate 67% 150% 336% 86% 135% 106%
1. Assumes an investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Sales charges are not reflected in the total returns. Total returns are not annualized for periods of less than one full year. 2. Annualized for periods of less than one full year. 3. Expense ratio has been calculated without adjustment for the reduction to custodian expenses. 4. Reduction to custodian expenses less than 0.01%. 5. Net of voluntary waiver of transfer agent fees. 6. Voluntary waiver of transfer agent fees less than 0.01%. See accompanying Notes to Financial Statements. 15 | OPPENHEIMER VALUE FUND FINANCIAL HIGHLIGHTS Continued Six Months Year Ended Ended April 30, 2003 Oct. 31, Class N (Unaudited) 2002 2001 1 -------------------------------------------------------------------------------- Per Share Operating Data Net asset value, beginning of period $ 14.68 $ 15.90 $ 18.08 -------------------------------------------------------------------------------- Income (loss) from investment operations: Net investment income (loss) .03 .05 (.02) Net realized and unrealized gain (loss) .73 (1.22) (2.16) ---------------------------------- Total from investment operations .76 (1.17) (2.18) -------------------------------------------------------------------------------- Dividends and/or distributions to shareholders: Dividends from net investment income (.05) (.05) -- Distributions from net realized gain -- -- -- ---------------------------------- Total dividends and/or distributions to shareholders (.05) (.05) -- -------------------------------------------------------------------------------- Net asset value, end of period $15.39 $14.68 $15.90 ================================== -------------------------------------------------------------------------------- Total Return, at Net Asset Value 2 5.16% (7.41)% (12.06)% -------------------------------------------------------------------------------- Ratios/Supplemental Data Net assets, end of period (in thousands) $2,805 $1,201 $12 -------------------------------------------------------------------------------- Average net assets (in thousands) $1,936 $ 508 $ 5 -------------------------------------------------------------------------------- Ratios to average net assets: 3 Net investment income (loss) 0.04% 0.00% (0.45)% Expenses, gross 1.64% 1.49% 1.61% Expenses, net 1.56% 4,5 1.49% 4,6 1.61% 4 -------------------------------------------------------------------------------- Portfolio turnover rate 67% 150% 336% 1. For the period from March 1, 2001 (inception of offering) to October 31, 2001. 2. Assumes an investment on the business day before the first day of the fiscal period (or inception of offering), with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Sales charges are not reflected in the total returns. Total returns are not annualized for periods of less than one full year. 3. Annualized for periods of less than one full year. 4. Reduction to custodian expenses less than 0.01%. 5. Net of voluntary waiver of transfer agent fees. 6. Voluntary waiver of transfer agent fees less than 0.01%. See accompanying Notes to Financial Statements. 16 | OPPENHEIMER VALUE FUND
Six Months Year Ended Ended April 30, 2003 Oct. 31, Class Y (Unaudited) 2002 2001 2000 1999 1998 ------------------------------------------------------------------------------------------------------------- Per Share Operating Data Net asset value, beginning of period $ 14.96 $ 16.20 $ 17.07 $ 20.72 $ 20.97 $ 23.34 -------------------------------------------------------------------------------------------------------------- Income (loss) from investment operations: Net investment income (loss) (.91) .06 1.10 1 .17 1 .22 .22 Net realized and unrealized gain (loss) 1.78 (1.21) 1 (.97) 1 (.63) 1 .64 .34 --------------------------------------------------------------- Total from investment operations .87 (1.15) (.87) (.46) .86 .56 -------------------------------------------------------------------------------------------------------------- Dividends and/or distributions to shareholders: Dividends from net investment income (.02) (.09) -- (.21) (.25) (.17) Distributions from net realized gain -- -- -- (2.98) (.86) (2.76) --------------------------------------------------------------- Total dividends and/or distributions to shareholders (.02) (.09) -- (3.19) (1.11) (2.93) -------------------------------------------------------------------------------------------------------------- Net asset value, end of period $15.81 $14.96 $16.20 $17.07 $20.72 $20.97 =============================================================== -------------------------------------------------------------------------------------------------------------- Total Return, at Net Asset Value 2 5.84% (7.18)% (5.10)% (2.42)% 3.81% 2.63% -------------------------------------------------------------------------------------------------------------- Ratios/Supplemental Data Net assets, end of period (in thousands) $1,482 $1,074 $638 $ 1 $76,571 $136,729 -------------------------------------------------------------------------------------------------------------- Average net assets (in thousands) $1,226 $ 955 $155 $48,714 $95,765 $118,010 -------------------------------------------------------------------------------------------------------------- Ratios to average net assets: 3 Net investment income 1.27% 0.33% 0.62% 1.06% 0.90% 1.19% Expenses, gross 1.92% 3.77% 1.20% 0.97% 0.76% 0.62% 4 Expenses, net 0.42% 5,6 1.23% 5,6 0.83% 5,6 0.97% 5 0.76% 5 0.62% -------------------------------------------------------------------------------------------------------------- Portfolio turnover rate 67% 150% 336% 86% 135% 106%
1. Per share amounts calculated based on the average shares outstanding during the period. 2. Assumes an investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Sales charges are not reflected in the total returns. Total returns are not annualized for periods of less than one full year. 3. Annualized for periods of less than one full year. 4. Expense ratio has been calculated without adjustment for the reduction to custodian expenses. 5. Reduction to custodian expenses less than 0.01%. 6. Net of voluntary waiver of transfer agent fees. See accompanying Notes to Financial Statements. 17 | OPPENHEIMER VALUE FUND NOTES TO FINANCIAL STATEMENTS Unaudited -------------------------------------------------------------------------------- 1. Significant Accounting Policies Oppenheimer Value Fund (the Fund), a series of Oppenheimer Series Fund, Inc. (the Company), is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. The Fund's investment objective is to seek long-term growth of capital by investing primarily in common stocks with low price-earnings ratios and better-than-anticipated earnings. The Fund's investment advisor is OppenheimerFunds, Inc. (the Manager). The Fund offers Class A, Class B, Class C, Class N and Class Y shares. Class A shares are sold at their offering price, which is normally net asset value plus a front-end sales charge. Class B, Class C and Class N shares are sold without a front-end sales charge but may be subject to a contingent deferred sales charge (CDSC). Class N shares are sold only through retirement plans. Retirement plans that offer Class N shares may impose charges on those accounts. Class Y shares are sold to certain institutional investors without either a front-end sales charge or a CDSC. All classes of shares have identical rights and voting privileges. Earnings, net assets and net asset value per share may differ by minor amounts due to each class having its own expenses directly attributable to that class. Classes A, B, C and N have separate distribution and/or service plans. No such plan has been adopted for Class Y shares. Class B shares will automatically convert to Class A shares six years after the date of purchase. The following is a summary of significant accounting policies consistently followed by the Fund. -------------------------------------------------------------------------------- Securities Valuation. Securities listed or traded on National Stock Exchanges or other domestic or foreign exchanges are valued based on the last sale price of the security traded on that exchange prior to the time when the Fund's assets are valued. In the absence of a sale, the security is valued at the last sale price on the prior trading day, if it is within the spread of the closing bid and asked prices, and if not, at the closing bid price. Securities (including restricted securities) for which quotations are not readily available are valued primarily using dealer-supplied valuations, a portfolio pricing service authorized by the Board of Directors, or at their fair value. Fair value is determined in good faith under consistently applied procedures under the supervision of the Board of Directors. Short-term "money market type" debt securities with remaining maturities of sixty days or less are valued at amortized cost (which approximates market value). -------------------------------------------------------------------------------- Foreign Currency Translation. The accounting records of the Fund are maintained in U.S. dollars. Prices of securities denominated in foreign currencies are translated into U.S. dollars at the closing rates of exchange. Amounts related to the purchase and sale of foreign securities and investment income are translated at the rates of exchange prevailing on the respective dates of such transactions. The effect of changes in foreign currency exchange rates on investments is separately identified from the fluctuations arising from changes in market values of securities held and reported with all other foreign currency gains and losses in the Fund's Statement of Operations. 18 | OPPENHEIMER VALUE FUND -------------------------------------------------------------------------------- Joint Repurchase Agreements. The Fund, along with other affiliated funds of the Manager, may transfer uninvested cash balances into one or more joint repurchase agreement accounts. These balances are invested in one or more repurchase agreements, secured by U.S. government securities. Securities pledged as collateral for repurchase agreements are held by a custodian bank until the agreements mature. Each agreement requires that the market value of the collateral be sufficient to cover payments of interest and principal; however, in the event of default by the other party to the agreement, retention of the collateral may be subject to legal proceedings. -------------------------------------------------------------------------------- Allocation of Income, Expenses, Gains and Losses. Income, expenses (other than those attributable to a specific class), gains and losses are allocated daily to each class of shares based upon the relative proportion of net assets represented by such class. Operating expenses directly attributable to a specific class are charged against the operations of that class. -------------------------------------------------------------------------------- Federal Taxes. The Fund intends to continue to comply with provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its taxable income, including any net realized gain on investments not offset by capital loss carryforwards, if any, to shareholders. Therefore, no federal income or excise tax provision is required. As of April 30, 2003, the Fund had available for federal income tax purposes an estimated unused capital loss carryforward of $43,808,574. This estimated capital loss carryforward represents the carryforward as of the end of the last fiscal year, increased for losses deferred under tax accounting rules for the current fiscal year and is increased or decreased by capital losses or gains realized in the first six months of the current fiscal year. During the six months ended April 30, 2003, the Fund did not use carryforward to offset capital gains realized. During the year ended October 31, 2002, the Fund did not use carryforward to offset capital gains realized. As of October 31, 2002, the Fund had available for federal income tax purposes unused capital loss carryforwards as follows: Expiring ---------------------- 2008 $ 9,239,162 2009 5,386,519 2010 27,168,039 ----------- Total $41,793,720 =========== -------------------------------------------------------------------------------- Directors' Compensation. The Fund has adopted an unfunded retirement plan for the Fund's independent directors. Benefits are based on years of service and fees paid to each director during the years of service. During the six months ended April 30, 2003, the Fund's projected benefit obligations were increased by $2,745 and payments of $3,614 were made to retired directors, resulting in an accumulated liability of $45,730 as of April 30, 2003. 19 | OPPENHEIMER VALUE FUND NOTES TO FINANCIAL STATEMENTS Unaudited / Continued -------------------------------------------------------------------------------- 1. Significant Accounting Policies Continued The Board of Directors has adopted a deferred compensation plan for independent directors that enables directors to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Fund. Under the plan, the compensation deferred is invested by the Fund in the fund(s) selected by the director. Deferral of directors' fees under the plan will not affect the net assets of the Fund, and will not materially affect the Fund's assets, liabilities or net investment income per share. -------------------------------------------------------------------------------- Dividends and Distributions to Shareholders. Dividends and distributions to shareholders, which are determined in accordance with income tax regulations, are recorded on the ex-dividend date. -------------------------------------------------------------------------------- Classification of Dividends and Distributions to Shareholders. Net investment income (loss) and net realized gain (loss) may differ for financial statement and tax purposes primarily because of the recognition of certain foreign currency gains (losses) as ordinary income (loss) for tax purposes. The character of dividends and distributions made during the fiscal year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. Also, due to timing of dividends and distributions, the fiscal year in which amounts are distributed may differ from the fiscal year in which the income or net realized gain was recorded by the Fund. The tax character of distributions paid during the six months ended April 30, 2003 and the year ended October 31, 2002 was as follows: Six Months Ended Year Ended April 30, 2003 October 31, 2002 -------------------------------------------------------- Distributions paid from: Ordinary income $334,032 $ 139,084 Long-term capital gain -- -- Return of capital -- -- ---------------------------- Total $334,032 $139,084 ============================ -------------------------------------------------------------------------------- Investment Income. Dividend income is recorded on the ex-dividend date or upon ex-dividend notification in the case of certain foreign dividends where the ex-dividend date may have passed. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Interest income, which includes accretion of discount and amortization of premium, is accrued as earned. -------------------------------------------------------------------------------- Security Transactions. Security transactions are recorded on the trade date. Realized gains and losses on securities sold are determined on the basis of identified cost. -------------------------------------------------------------------------------- Other. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. 20 | OPPENHEIMER VALUE FUND -------------------------------------------------------------------------------- 2. Shares of Capital Stock The Fund has authorized 600 million shares of $0.001 par value capital stock of each class. Transactions in shares of capital stock were as follows:
Six Months Ended April 30, 2003 Year Ended October 31, 2002 Shares Amount Shares Amount ---------------------------------------------------------------------------------------- Class A Sold 1,927,502 $ 29,318,107 1,908,060 $ 31,560,410 Dividends and/or distributions reinvested 20,386 312,728 7,395 129,115 Redeemed (1,454,880) (21,884,964) (2,777,138) (45,899,702) ----------------------------------------------------------- Net increase (decrease) 493,008 $ 7,745,871 (861,683) $(14,210,177) =========================================================== --------------------------------------------------------------------------------------- Class B Sold 644,593 $ 9,687,942 849,996 $ 13,980,805 Dividends and/or distributions reinvested -- -- -- -- Redeemed (733,954) (10,895,819) (1,241,241) (20,131,407) ----------------------------------------------------------- Net decrease (89,361) $ (1,207,877) (391,245) $ (6,150,602) =========================================================== --------------------------------------------------------------------------------------- Class C Sold 1,246,278 $ 18,506,805 508,463 $ 8,150,546 Dividends and/or distributions reinvested -- -- -- -- Redeemed (865,838) (12,675,844) (245,484) (3,850,883) ----------------------------------------------------------- Net increase 380,440 $ 5,830,961 262,979 $ 4,299,663 =========================================================== --------------------------------------------------------------------------------------- Class N Sold 146,555 $ 2,183,264 91,314 $ 1,447,129 Dividends and/or distributions reinvested 264 4,022 2 40 Redeemed (46,476) (673,183) (10,222) (160,590) ----------------------------------------------------------- Net increase 100,343 $ 1,514,103 81,094 $ 1,286,579 =========================================================== --------------------------------------------------------------------------------------- Class Y Sold 28,791 $ 435,926 46,172 $ 771,487 Dividends and/or distributions reinvested 105 1,632 201 3,570 Redeemed (6,951) (105,089) (13,958) (211,425) ----------------------------------------------------------- Net increase 21,945 $ 332,469 32,415 $ 563,632 ===========================================================
-------------------------------------------------------------------------------- 3. Purchases and Sales of Securities The aggregate cost of purchases and proceeds from sales of securities, other than short-term obligations, for the six months ended April 30, 2003, were $148,714,617 and $136,189,196, respectively. 21 | OPPENHEIMER VALUE FUND NOTES TO FINANCIAL STATEMENTS Unaudited / Continued -------------------------------------------------------------------------------- 4. Fees and Other Transactions with Affiliates Management Fees. Management fees paid to the Manager were in accordance with the investment advisory agreement with the Fund which provides for a fee of 0.625% of the first $300 million of average annual net assets of the Fund, 0.50% of the next $100 million, and 0.45% of average annual net assets in excess of $400 million. -------------------------------------------------------------------------------- Accounting Fees. The Manager acts as the accounting agent for the Fund at an annual fee of $15,000, plus out-of-pocket costs and expenses reasonably incurred. -------------------------------------------------------------------------------- Transfer Agent Fees. OppenheimerFunds Services (OFS), a division of the Manager, acts as the transfer and shareholder servicing agent for the Fund. The Fund pays OFS a $19.75 per account fee. Additionally, Class Y shares are subject to minimum fees of $5,000 for assets of less than $10 million and $10,000 for assets of $10 million or more. The Class Y shares are subject to the minimum fees in the event that the per account fee does not equal or exceed the applicable minimum fees. OFS may voluntarily waive the minimum fees. OFS has voluntarily agreed to limit transfer and shareholder servicing agent fees up to an annual rate of 0.35% of average annual net assets for all classes. This undertaking may be amended or withdrawn at any time. -------------------------------------------------------------------------------- Distribution and Service Plan (12b-1) Fees. Under its General Distributor's Agreement with the Manager, OppenheimerFunds Distributor, Inc. (the Distributor) acts as the Fund's principal underwriter in the continuous public offering of the different classes of shares of the Fund. The compensation paid to (or retained by) the Distributor from the sale of shares or on the redemption of shares is shown in the table below for the period indicated.
Aggregate Class A Concessions Concessions Concessions Concessions Front-End Front-End on Class A on Class B on Class C on Class N Sales Charges Sales Charges Shares Shares Shares Shares Six Months on Class A Retained by Advanced by Advanced by Advanced by Advanced by Ended Shares Distributor Distributor 1 Distributor 1 Distributor 1 Distributor 1 ---------------------------------------------------------------------------------------------------- April 30, 2003 $205,574 $85,223 $12,365 $171,522 $52,712 $13,850
1. The Distributor advances concession payments to dealers for certain sales of Class A shares and for sales of Class B, Class C and Class N shares from its own resources at the time of sale. Class A Class B Class C Class N Contingent Contingent Contingent Contingent Deferred Deferred Deferred Deferred Sales Charges Sales Charges Sales Charges Sales Charges Retained by Retained by Retained by Retained by Six Months Ended Distributor Distributor Distributor Distributor -------------------------------------------------------------------------------- April 30, 2003 $2,163 $104,265 $2,025 $2,943 -------------------------------------------------------------------------------- Service Plan for Class A Shares. The Fund has adopted a Service Plan for Class A Shares. It reimburses the Distributor for a portion of its costs incurred for services provided to accounts that hold Class A shares. Reimbursement is made quarterly at an annual rate of up to 0.25% of the average annual net assets of Class A shares of the Fund. For the six months ended April 30, 2003, payments under the Class A Plan totaled $181,108, all of 22 | OPPENHEIMER VALUE FUND which were paid by the Distributor to recipients, and included $60,917 paid to an affiliate of the Manager. Any unreimbursed expenses the Distributor incurs with respect to Class A shares in any fiscal year cannot be recovered in subsequent years. -------------------------------------------------------------------------------- Distribution and Service Plans for Class B, Class C and Class N Shares. The Fund has adopted Distribution and Service Plans for Class B, Class C and Class N shares. Under the plans, the Fund pays the Distributor an annual asset-based sales charge of 0.75% per year on Class B shares and on Class C shares and the Fund pays the Distributor an annual asset-based sales charge of 0.25% per year on Class N shares. The Distributor also receives a service fee of 0.25% per year under each plan. Distribution fees paid to the Distributor for the six months ended April 30, 2003, were as follows: Distributor's Distributor's Aggregate Aggregate Unreimbursed Unreimbursed Expenses as % Total Payments Amount Retained Expenses of Net Assets Under Plan by Distributor Under Plan of Class ----------------------------------------------------------------------------- Class B Plan $240,300 $183,422 $2,253,100 4.66% Class C Plan 81,524 32,271 445,523 2.24 Class N Plan 4,779 4,326 42,030 1.50 -------------------------------------------------------------------------------- 5. Option Activity The Fund may buy and sell put and call options, or write put and covered call options on portfolio securities in order to produce incremental earnings or protect against changes in the value of portfolio securities. The Fund generally purchases put options or writes covered call options to hedge against adverse movements in the value of portfolio holdings. When an option is written, the Fund receives a premium and becomes obligated to sell or purchase the underlying security at a fixed price, upon exercise of the option. Options are valued daily based upon the last sale price on the principal exchange on which the option is traded and unrealized appreciation or depreciation is recorded. The Fund will realize a gain or loss upon the expiration or closing of the option transaction. When an option is exercised, the proceeds on sales for a written call option, the purchase cost for a written put option, or the cost of the security for a purchased put or call option is adjusted by the amount of premium received or paid. Securities designated to cover outstanding call options are noted in the Statement of Investments where applicable. Shares subject to call, expiration date, exercise price, premium received and market value are detailed in a note to the Statement of Investments. Options written are reported as a liability in the Statement of Assets and Liabilities. Realized gains and losses are reported in the Statement of Operations. The risk in writing a call option is that the Fund gives up the opportunity for profit if the market price of the security increases and the option is exercised. The risk in writing a put option is that the Fund may incur a loss if the market price of the security decreases 23 | OPPENHEIMER VALUE FUND NOTES TO FINANCIAL STATEMENTS Unaudited / Continued -------------------------------------------------------------------------------- 5. Option Activity Continued and the option is exercised. The risk in buying an option is that the Fund pays a premium whether or not the option is exercised. The Fund also has the additional risk of not being able to enter into a closing transaction if a liquid secondary market does not exist. Written option activity for the six months ended April 30, 2003 was as follows: Call Options ------------------------- Number of Amount of Contracts Premiums ---------------------------------------------------------------- Options outstanding as of October 31, 2002 14 $ 742 Options written 1,511 72,602 Options exercised (1,525) (73,344) ----------------------- Options outstanding as of April 30, 2003 -- $ -- ======================= -------------------------------------------------------------------------------- 6. Borrowing and Lending Arrangements Interfund Borrowing and Lending Arrangements. Commencing November 12, 2002, the Fund entered into an "interfund borrowing and lending arrangement" with other funds in the Oppenheimer funds complex, to allow funds to borrow for liquidity purposes. The arrangement was initiated pursuant to exemptive relief granted by the Securities and Exchange Commission to allow these affiliated funds to lend money to, and borrow money from, each other, in an attempt to reduce borrowing costs below those of bank loan facilities. Under the arrangement the Fund may lend money to other Oppenheimer funds and may borrow from other Oppenheimer funds at a rate set by the Fund's Board of Directors, based upon a recommendation by the investment manager. The Fund's borrowings, if any, are subject to asset coverage requirements under the Investment Company Act and the provisions of the SEC order and other applicable regulations. If the Fund borrows money, there is a risk that the loan could be called on one day's notice, in which case the Fund might have to borrow from a bank at higher rates if a loan were not available from another Oppenheimer fund. If the Fund lends money to another fund, it will be subject to the risk that the other fund might not repay the loan in a timely manner, or at all. The Fund had no interfund borrowings or loans outstanding during the six months ended or at April 30, 2003. 24 | OPPENHEIMER VALUE FUND ITEM 2. CODE OF ETHICS - NOT REQUIRED ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT - NOT REQUIRED ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES - NOT REQUIRED ITEM 5. RESERVED ITEM 6. RESERVED ITEM 7. NOT APPLICABLE ITEM 8. RESERVED ITEM 9. CONTROLS AND PROCEDURES (a) Based on their evaluation of registrant's disclosure controls and procedures (as defined in rule 30a-2(c) under the Investment Company Act of 1940 (17 CFR 270.30a-2(c)) as of April 30, 2003, registrant's principal executive officer and principal financial officer found registrant's disclosure controls and procedures to be appropriately designed to ensure that information required to be disclosed by registrant in the reports that it files under the Securities Exchange Act of 1934 (a) is accumulated and communicated to registrant's management, including its principal executive officer and principal financial officer, to allow timely decisions regarding required disclosure, and (b) is recorded, processed, summarized and reported, within the time periods specified in the rules and forms adopted by the U.S. Securities and Exchange Commission. (b) There have been no significant changes in registrant's internal controls or in other factors that could significantly affect registrant's internal controls subsequent to the date of the most recent evaluation as indicated, including no significant deficiencies or material weaknesses that required corrective action. ITEM 10. EXHIBITS ATTACHED HERETO. (ATTACH CERTIFICATIONS AS EXHIBITS)