UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-3346
Oppenheimer Series Fund
(Exact name of registrant as specified in charter)
6803 South Tucson Way, Centennial, Colorado 80112-3924
(Address of principal executive offices) (Zip code)
Arthur S. Gabinet
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: October 31
Date of reporting period: 10/31/2014
Item 1. Reports to Stockholders.
Class A Shares
AVERAGE ANNUAL TOTAL RETURNS AT 10/31/14
Class A Shares of the Fund | ||||||||
Without Sales Charge |
With Sales Charge |
S&P 500 Index |
Russell 1000 Value | |||||
1-Year |
12.30% | 5.84% | 17.27% | 16.46% | ||||
5-Year |
12.72 | 11.40 | 16.69 | 16.49 | ||||
10-Year |
6.95 | 6.32 | 8.20 | 7.90 |
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).
2 OPPENHEIMER VALUE FUND
The Funds Class A shares (without sales charge) produced a total return of 12.30%, underperforming the Russell 1000 Value Index (the Index), which returned 16.46% during the same period. The Funds underperformance versus the Index stemmed primarily from less favorable stock selection within the financials, industrials, health care and consumer staples sectors. Overweight positions in industrials and consumer staples also detracted from relative performance. The Fund outperformed the Index in the consumer discretionary sector, due to stronger relative stock selection.
MARKET OVERVIEW
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
3 OPPENHEIMER VALUE FUND
4 OPPENHEIMER VALUE FUND
5 OPPENHEIMER VALUE FUND
6 OPPENHEIMER VALUE FUND
SECTOR ALLOCATION
Portfolio holdings and allocations are subject to change. Percentages are as of October 31, 2014, and are based on the total market value of common stocks.
7 OPPENHEIMER VALUE FUND
Share Class Performance
AVERAGE ANNUAL TOTAL RETURNS WITHOUT SALES CHARGE AS OF 10/31/14
Inception Date | 1-Year | 5-Year | 10-Year | |||||||||||||||
Class A (CGRWX) |
9/16/85 | 12.30% | 12.72% | 6.95% | ||||||||||||||
Class B (CGRBX) |
10/2/95 | 11.46% | 11.79% | 6.42% | ||||||||||||||
Class C (CGRCX) |
5/1/96 | 11.44% | 11.87% | 6.14% | ||||||||||||||
Class I (OGRIX) |
2/28/12 | 12.80% | 16.00% | * | N/A | |||||||||||||
Class R (CGRNX) |
3/1/01 | 12.01% | 12.44% | 6.64% | ||||||||||||||
Class Y (CGRYX) |
12/16/96 | 12.58% | 13.15% | 7.35% |
AVERAGE ANNUAL TOTAL RETURNS WITH SALES CHARGE AS OF 10/31/14
Inception Date | 1-Year | 5-Year | 10-Year | |||||||||||||||
Class A (CGRWX) |
9/16/85 | 5.84% | 11.40% | 6.32% | ||||||||||||||
Class B (CGRBX) |
10/2/95 | 6.46% | 11.53% | 6.42% | ||||||||||||||
Class C (CGRCX) |
5/1/96 | 10.44% | 11.87% | 6.14% | ||||||||||||||
Class I (OGRIX) |
2/28/12 | 12.80% | 16.00% | * | N/A | |||||||||||||
Class R (CGRNX) |
3/1/01 | 11.01% | 12.44% | 6.64% | ||||||||||||||
Class Y (CGRYX) |
12/16/96 | 12.58% | 13.15% | 7.35% |
* Shows performance since inception
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%; for Class B shares, the contingent deferred sales charge of 5% (1-year) and 2% (5-year); and for Class C shares, the contingent deferred sales charge (CDSC) of 1% for the 1-year period. Prior to 7/1/14, Class R shares were named Class N shares. Beginning 7/1/14, new purchases of Class R shares will no longer be subject to a CDSC upon redemption (any CDSC will remain in effect for purchases prior to 7/1/14). There is no sales charge for Class I and Class Y shares. Because Class B shares convert to Class A shares 72 months after purchase, the 10-year return for Class B shares uses Class A performance for the period after conversion.
The Funds performance is compared to the performance of the S&P 500 Index and the Russell 1000 Value Index. The S&P 500 Index is a capitalization-weighted index of 500 stocks intended to be a representative sample of leading companies in leading industries within the U.S. economy. The Russell 1000 Value Index measures the performance of the large-cap value segment of the U.S. equity universe. It includes those Russell 1000 companies with lower price-to-book ratios and lower expected growth values. The indices are 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
8 OPPENHEIMER VALUE FUND
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.
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.
9 OPPENHEIMER 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, 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, 2014.
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, 2014 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.
10 OPPENHEIMER VALUE FUND
Actual | Beginning Account Value May 1, 2014 |
Ending Account Value October 31, 2014 |
Expenses Paid During 6 Months Ended October 31, 2014 |
|||||||||
Class A | $ | 1,000.00 | $ | 1,048.00 | $ | 5.02 | ||||||
Class B | 1,000.00 | 1,044.00 | 8.95 | |||||||||
Class C | 1,000.00 | 1,043.90 | 8.90 | |||||||||
Class I | 1,000.00 | 1,050.30 | 2.74 | |||||||||
Class R | 1,000.00 | 1,046.70 | 6.31 | |||||||||
Class Y | 1,000.00 | 1,049.20 | 3.67 | |||||||||
Hypothetical |
||||||||||||
(5% return before expenses) | ||||||||||||
Class A | 1,000.00 | 1,020.32 | 4.95 | |||||||||
Class B | 1,000.00 | 1,016.48 | 8.83 | |||||||||
Class C | 1,000.00 | 1,016.53 | 8.78 | |||||||||
Class I | 1,000.00 | 1,022.53 | 2.71 | |||||||||
Class R | 1,000.00 | 1,019.06 | 6.23 | |||||||||
Class Y | 1,000.00 | 1,021.63 | 3.62 |
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, 2014 are as follows:
Class | Expense Ratios | |||
Class A | 0.97% | |||
Class B | 1.73 | |||
Class C | 1.72 | |||
Class I | 0.53 | |||
Class R | 1.22 | |||
Class Y | 0.71 |
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.
11 OPPENHEIMER VALUE FUND
STATEMENT OF INVESTMENTS October 31, 2014
12 OPPENHEIMER VALUE FUND
13 OPPENHEIMER VALUE FUND
STATEMENT OF INVESTMENTS Continued
Footnotes to Statement of Investments
1. Non-income producing security.
2. Is or was an affiliate, as defined in the Investment Company Act of 1940, as amended, at or during the period ended October 31, 2014, 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 period in which the issuer was an affiliate are as follows:
Shares October 31, 2013 |
Gross Additions |
Gross Reductions |
Shares October 31, 2014 |
|||||||||||||
|
||||||||||||||||
Oppenheimer Institutional Money Market Fund, Cl. E | 25,923,525 | 353,847,431 | 365,842,170 | 13,928,786 |
Value | Income | |||||||||||
|
||||||||||||
Oppenheimer Institutional Money Market Fund, Cl. E | $ | 13,928,786 | $ | 14,249 |
3. Rate shown is the 7-day yield as of October 31, 2014.
See accompanying Notes to Financial Statements.
14 OPPENHEIMER VALUE FUND
STATEMENT OF ASSETS AND LIABILITIES October 31, 2014
|
||||
Assets | ||||
Investments, at valuesee accompanying statement of investments: | ||||
Unaffiliated companies (cost $1,795,777,035) | $ | 2,215,408,067 | ||
Affiliated companies (cost $13,928,786) | 13,928,786 | |||
|
|
|||
2,229,336,853 | ||||
|
||||
Cash | 1,000,000 | |||
|
||||
Receivables and other assets: | ||||
Investments sold | 7,598,075 | |||
Dividends | 1,669,626 | |||
Shares of beneficial interest sold | 408,614 | |||
Other | 193,948 | |||
|
|
|||
Total assets |
|
2,240,207,116
|
| |
|
||||
Liabilities | ||||
Payables and other liabilities: | ||||
Investments purchased | 9,639,519 | |||
Shares of beneficial interest redeemed | 1,533,686 | |||
Trustees compensation | 356,432 | |||
Distribution and service plan fees | 187,775 | |||
Shareholder communications | 9,417 | |||
Dividends | 967 | |||
Other | 29,298 | |||
|
|
|||
Total liabilities |
|
11,757,094
|
| |
|
||||
Net Assets | $ | 2,228,450,022 | ||
|
|
|||
|
||||
Composition of Net Assets | ||||
Par value of shares of beneficial interest | $ | 70,177 | ||
|
||||
Additional paid-in capital | 2,029,639,018 | |||
|
||||
Accumulated net investment income | 220,314 | |||
|
||||
Accumulated net realized loss on investments | (221,110,519) | |||
|
||||
Net unrealized appreciation on investments | 419,631,032 | |||
|
|
|||
Net Assets | $ | 2,228,450,022 | ||
|
|
15 OPPENHEIMER VALUE FUND
STATEMENT OF ASSETS AND LIABILITIES Continued
|
||||
Net Asset Value Per Share | ||||
Class A Shares:
|
||||
Net asset value and redemption price per share (based on net assets of $647,109,448 and 20,545,844 shares of beneficial interest outstanding) | $ | 31.50 | ||
Maximum offering price per share (net asset value plus sales charge of 5.75% of offering price) | $ | 33.42 | ||
|
||||
Class B Shares: |
||||
Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $16,257,663 and 523,925 shares of beneficial interest outstanding) | $ | 31.03 | ||
|
||||
Class C Shares: |
||||
Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $138,165,050 and 4,576,372 shares of beneficial interest outstanding) | $ | 30.19 | ||
|
||||
Class I Shares: |
||||
Net asset value, redemption price and offering price per share (based on net assets of $1,258,238,501 and 39,206,066 shares of beneficial interest outstanding) | $ | 32.09 | ||
|
||||
Class R Shares: |
||||
Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $62,325,736 and 2,015,395 shares of beneficial interest outstanding) | $ | 30.92 | ||
|
||||
Class Y Shares: |
||||
Net asset value, redemption price and offering price per share (based on net assets of $106,353,624 and 3,309,142 shares of beneficial interest outstanding) | $ | 32.14 |
See accompanying Notes to Financial Statements.
16 OPPENHEIMER VALUE FUND
STATEMENT OF OPERATIONS For the Year Ended October 31, 2014
|
||||
Investment Income | ||||
|
||||
Dividends: | ||||
Unaffiliated companies (net of foreign withholding taxes of $1,364,242) | $ | 52,502,067 | ||
Affiliated companies | 14,249 | |||
|
||||
Interest | 40 | |||
|
|
|||
Total investment income | 52,516,356 | |||
|
||||
Expenses | ||||
Management fees | 11,008,949 | |||
|
||||
Distribution and service plan fees: | ||||
Class A | 1,589,577 | |||
Class B | 192,156 | |||
Class C | 1,374,494 | |||
Class R1 | 319,017 | |||
|
||||
Transfer and shareholder servicing agent fees: | ||||
Class A | 1,429,431 | |||
Class B | 42,361 | |||
Class C | 304,155 | |||
Class I | 371,162 | |||
Class R1 | 142,615 | |||
Class Y | 457,093 | |||
|
||||
Shareholder communications: | ||||
Class A | 15,321 | |||
Class B | 130 | |||
Class C | 3,535 | |||
Class I | 650 | |||
Class R1 | 1,016 | |||
Class Y | 148 | |||
|
||||
Trustees compensation | 40,036 | |||
|
||||
Custodian fees and expenses | 13,285 | |||
|
||||
Other | 278,873 | |||
|
|
|||
Total expenses | 17,584,004 | |||
Less waivers and reimbursements of expenses | (17,261) | |||
|
|
|||
Net expenses | 17,566,743 | |||
|
||||
Net Investment Income | 34,949,613 | |||
|
||||
Realized and Unrealized Gain | ||||
Net realized gain on investments from unaffiliated companies | 132,353,566 | |||
|
||||
Net change in unrealized appreciation/depreciation on investments | 106,926,717 | |||
|
||||
Net Increase in Net Assets Resulting from Operations | $ | 274,229,896 | ||
|
|
1. Effective July 1, 2014, Class N shares were renamed Class R. See Note 1 of the accompanying Notes.
See accompanying Notes to Financial Statements.
17 OPPENHEIMER VALUE FUND
STATEMENTS OF CHANGES IN NET ASSETS
Year Ended October 31, 2014 |
Year Ended October 31, 2013 |
|||||||
|
||||||||
Operations | ||||||||
Net investment income | $ | 34,949,613 | $ | 32,668,676 | ||||
|
||||||||
Net realized gain | 132,353,566 | 428,848,491 | ||||||
|
||||||||
Net change in unrealized appreciation/depreciation | 106,926,717 | 68,386,882 | ||||||
|
|
|
|
|||||
Net increase in net assets resulting from operations |
|
274,229,896
|
|
|
529,904,049
|
| ||
|
||||||||
Dividends and/or Distributions to Shareholders | ||||||||
Dividends from net investment income: | ||||||||
Class A | (14,601,468) | (8,243,071) | ||||||
Class B | (182,611) | (72,225) | ||||||
Class C | (1,602,292) | (766,682) | ||||||
Class I | (34,055,411) | (190) | ||||||
Class R1 | (1,196,358) | (791,763) | ||||||
Class Y | (7,859,799) | (24,251,061) | ||||||
|
|
|||||||
|
(59,497,939)
|
|
|
(34,124,992)
|
| |||
|
||||||||
Beneficial Interest Transactions | ||||||||
Net increase (decrease) in net assets resulting from beneficial interest transactions: | ||||||||
Class A | (51,579,288) | (133,209,558) | ||||||
Class B | (7,762,595) | (8,671,850) | ||||||
Class C | (10,507,926) | (15,170,614) | ||||||
Class I | 120,737,182 | 923,315,087 | ||||||
Class R1 | (12,757,329) | (25,868,854) | ||||||
Class Y | (308,583,997) | (1,198,423,867) | ||||||
|
|
|
|
|||||
|
(270,453,953)
|
|
|
(458,029,656)
|
| |||
|
||||||||
Net Assets | ||||||||
Total increase (decrease) | (55,721,996) | 37,749,401 | ||||||
|
||||||||
Beginning of period | 2,284,172,018 | 2,246,422,617 | ||||||
|
|
|
|
|||||
End of period (including accumulated net investment income of $220,314 and $24,768,640, respectively) | $ | 2,228,450,022 | $ | 2,284,172,018 | ||||
|
|
|
|
1. Effective July 1, 2014, Class N shares were renamed Class R. See Note 1 of the accompanying Notes.
See accompanying Notes to Financial Statements.
18 OPPENHEIMER VALUE FUND
Class A | Year Ended October 31, 2014 |
Year Ended October 31, 2013 |
Year Ended October 31, 2012 |
Year Ended October 31, 2011 |
Year Ended October 29, 2010 1 |
|||||||||||||||
|
||||||||||||||||||||
Per Share Operating Data | ||||||||||||||||||||
Net asset value, beginning of period | $ | 28.69 | $ | 22.92 | $ | 20.97 | $ | 20.48 | $ | 18.56 | ||||||||||
|
||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income2 | 0.39 | 0.32 | 0.32 | 0.19 | 0.12 | |||||||||||||||
Net realized and unrealized gain | 3.10 | 5.76 | 1.88 | 0.45 | 2.08 | |||||||||||||||
|
|
|||||||||||||||||||
Total from investment operations | 3.49 | 6.08 | 2.20 | 0.64 | 2.20 | |||||||||||||||
|
||||||||||||||||||||
Dividends and/or distributions to shareholders: | ||||||||||||||||||||
Dividends from net investment income | (0.68) | (0.31) | (0.25) | (0.15) | (0.28) | |||||||||||||||
|
||||||||||||||||||||
Net asset value, end of period | $ | 31.50 | $ | 28.69 | $ | 22.92 | $ | 20.97 | $ | 20.48 | ||||||||||
|
|
|||||||||||||||||||
|
||||||||||||||||||||
Total Return, at Net Asset Value3 | 12.30% | 26.88% | 10.63% | 3.14% | 11.93% | |||||||||||||||
|
||||||||||||||||||||
Ratios/Supplemental Data | ||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 647,109 | $ | 638,332 | $ | 629,917 | $ | 689,650 | $ | 774,741 | ||||||||||
|
||||||||||||||||||||
Average net assets (in thousands) | $ | 647,197 | $ | 630,389 | $ | 659,914 | $ | 767,598 | $ | 804,972 | ||||||||||
|
||||||||||||||||||||
Ratios to average net assets:4 | ||||||||||||||||||||
Net investment income | 1.31% | 1.27% | 1.49% | 0.88% | 0.64% | |||||||||||||||
Total expenses5 | 0.96% | 0.99% | 1.03% | 1.02% | 1.06% | |||||||||||||||
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses | 0.96% | 0.99% | 1.03% | 1.02% | 1.06% | |||||||||||||||
|
||||||||||||||||||||
Portfolio turnover rate | 46% | 149% | 72% | 91% | 99% |
1. October 29, 2010 represents the last business day of the Funds reporting period.
2. Per share amounts calculated based on the average shares outstanding during the period.
3. 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.
4. Annualized for periods less than one full year.
5. Total expenses including indirect expenses from affiliated fund fees and expenses were as follows:
Year Ended October 31, 2014 | 0.96 | % | ||||||
Year Ended October 31, 2013 | 0.99 | % | ||||||
Year Ended October 31, 2012 | 1.03 | % | ||||||
Year Ended October 31, 2011 | 1.02 | % | ||||||
Year Ended October 29, 2010 | 1.06 | % |
See accompanying Notes to Financial Statements.
19 OPPENHEIMER VALUE FUND
FINANCIAL HIGHLIGHTS Continued
Class B | Year Ended October 31, 2014 |
Year Ended October 31, 2013 |
Year Ended October 31, 2012 |
Year Ended October 31, 2011 |
Year Ended October 29, 2010 1 |
|||||||||||||||
|
||||||||||||||||||||
Per Share Operating Data | ||||||||||||||||||||
Net asset value, beginning of period | $ | 28.09 | $ | 22.40 | $ | 20.41 | $ | 19.97 | $ | 18.11 | ||||||||||
|
||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss)2 | 0.18 | 0.11 | 0.14 | 0.01 | (0.03) | |||||||||||||||
Net realized and unrealized gain | 3.02 | 5.65 | 1.85 | 0.43 | 2.02 | |||||||||||||||
|
|
|||||||||||||||||||
Total from investment operations | 3.20 | 5.76 | 1.99 | 0.44 | 1.99 | |||||||||||||||
|
||||||||||||||||||||
Dividends and/or distributions to shareholders: | ||||||||||||||||||||
Dividends from net investment income | (0.26) | (0.07) | 0.00 | 0.00 | (0.13) | |||||||||||||||
|
||||||||||||||||||||
Net asset value, end of period | $ | 31.03 | $ | 28.09 | $ | 22.40 | $ | 20.41 | $ | 19.97 | ||||||||||
|
|
|||||||||||||||||||
|
||||||||||||||||||||
Total Return, at Net Asset Value3
|
11.46% | 25.78% | 9.75% | 2.20% | 11.01% | |||||||||||||||
|
||||||||||||||||||||
Ratios/Supplemental Data | ||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 16,258 | $ | 22,050 | $ | 25,453 | $ | 35,438 | $ | 51,609 | ||||||||||
|
||||||||||||||||||||
Average net assets (in thousands) | $ | 19,155 | $ | 23,322 | $ | 29,843 | $ | 46,125 | $ | 56,054 | ||||||||||
|
||||||||||||||||||||
Ratios to average net assets:4 | ||||||||||||||||||||
Net investment income (loss) | 0.59% | 0.43% | 0.67% | 0.03% | (0.18)% | |||||||||||||||
Total expenses5 | 1.72% | 1.95% | 2.15% | 2.13% | 2.15% | |||||||||||||||
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses | 1.72% | 1.83% | 1.89% | 1.90% | 1.90% | |||||||||||||||
|
||||||||||||||||||||
Portfolio turnover rate | 46% | 149% | 72% | 91% | 99% |
1. October 29, 2010 represents the last business day of the Funds reporting period.
2. Per share amounts calculated based on the average shares outstanding during the period.
3. 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.
4. Annualized for periods less than one full year.
5. Total expenses including indirect expenses from affiliated fund fees and expenses were as follows:
Year Ended October 31, 2014 | 1.72 | % | ||||||
Year Ended October 31, 2013 | 1.95 | % | ||||||
Year Ended October 31, 2012 | 2.15 | % | ||||||
Year Ended October 31, 2011 | 2.13 | % | ||||||
Year Ended October 29, 2010 | 2.15 | % |
See accompanying Notes to Financial Statements.
20 OPPENHEIMER VALUE FUND
Class C | Year Ended October 31, 2014 |
Year Ended October 31, 2013 |
Year Ended October 31, 2012 |
Year Ended October 31, 2011 |
Year Ended October 29, 2010 1 |
|||||||||||||||
|
||||||||||||||||||||
Per Share Operating Data | ||||||||||||||||||||
Net asset value, beginning of period | $ | 27.41 | $ | 21.91 | $ | 20.02 | $ | 19.57 | $ | 17.76 | ||||||||||
|
||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss)2 | 0.16 | 0.13 | 0.15 | 0.03 | (0.02) | |||||||||||||||
Net realized and unrealized gain | 2.95 | 5.51 | 1.81 | 0.43 | 1.99 | |||||||||||||||
|
|
|||||||||||||||||||
Total from investment operations | 3.11 | 5.64 | 1.96 | 0.46 | 1.97 | |||||||||||||||
|
||||||||||||||||||||
Dividends and/or distributions to shareholders: | ||||||||||||||||||||
Dividends from net investment income | (0.33) | (0.14) | (0.07) | (0.01) | (0.16) | |||||||||||||||
|
||||||||||||||||||||
Net asset value, end of period | $ | 30.19 | $ | 27.41 | $ | 21.91 | $ | 20.02 | $ | 19.57 | ||||||||||
|
|
|||||||||||||||||||
|
||||||||||||||||||||
Total Return, at Net Asset Value3
|
11.44% | 25.91% | 9.82% | 2.35% | 11.12% | |||||||||||||||
|
||||||||||||||||||||
Ratios/Supplemental Data | ||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 138,165 | $ | 135,364 | $ | 121,985 | $ | 139,828 | $ | 160,129 | ||||||||||
|
||||||||||||||||||||
Average net assets (in thousands) | $ | 137,577 | $ | 127,553 | $ | 127,217 | $ | 161,588 | $ | 163,194 | ||||||||||
|
||||||||||||||||||||
Ratios to average net assets:4 | ||||||||||||||||||||
Net investment income (loss) | 0.55% | 0.51% | 0.73% | 0.14% | (0.11)% | |||||||||||||||
Total expenses5 | 1.71% | 1.73% | 1.79% | 1.76% | 1.81% | |||||||||||||||
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses | 1.71% | 1.73% | 1.79% | 1.76% | 1.81% | |||||||||||||||
|
||||||||||||||||||||
Portfolio turnover rate | 46% | 149% | 72% | 91% | 99% |
1. October 29, 2010 represents the last business day of the Funds reporting period. |
2. Per share amounts calculated based on the average shares outstanding during the period. |
3. 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. |
4. Annualized for periods less than one full year. |
5. Total expenses including indirect expenses from affiliated fund fees and expenses were as follows: |
Year Ended October 31, 2014 | 1.71 | % | ||||||
Year Ended October 31, 2013 | 1.73 | % | ||||||
Year Ended October 31, 2012 | 1.79 | % | ||||||
Year Ended October 31, 2011 | 1.76 | % | ||||||
Year Ended October 29, 2010 | 1.81 | % |
See accompanying Notes to Financial Statements.
21 OPPENHEIMER VALUE FUND
FINANCIAL HIGHLIGHTS Continued
Class I | Year Ended October 31, 2014 |
Year Ended October 31, 2013 |
Period Ended October 31, 2012 1 |
|||||||||||
|
||||||||||||||
Per Share Operating Data | ||||||||||||||
Net asset value, beginning of period | $ | 29.31 | $ | 23.44 | $ | 22.65 | ||||||||
|
||||||||||||||
Income (loss) from investment operations: | ||||||||||||||
Net investment income2 | 0.54 | 0.39 | 0.25 | |||||||||||
Net realized and unrealized gain | 3.15 | 5.91 | 0.54 | |||||||||||
Total from investment operations | 3.69 | 6.30 | 0.79 | |||||||||||
|
||||||||||||||
Dividends and/or distributions to shareholders: | ||||||||||||||
Dividends from net investment income | (0.91) | (0.43) | 0.00 | |||||||||||
|
||||||||||||||
Net asset value, end of period | $ | 32.09 | $ | 29.31 | $ | 23.44 | ||||||||
|
|
|||||||||||||
|
|
|||||||||||||
|
||||||||||||||
Total Return, at Net Asset Value3 | 12.80% | 27.40% | 3.49% | |||||||||||
|
||||||||||||||
Ratios/Supplemental Data | ||||||||||||||
Net assets, end of period (in thousands) | $ | 1,258,238 | $ | 1,025,569 | $ | 11 | ||||||||
|
||||||||||||||
Average net assets (in thousands) | $ | 1,231,132 | $ | 351,280 | $ | 10 | ||||||||
|
||||||||||||||
Ratios to average net assets:4 | ||||||||||||||
Net investment income | 1.74% | 1.38% | 1.65% | |||||||||||
Total expenses5 | 0.52% | 0.51% | 0.51% | |||||||||||
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses | 0.52% | 0.51% | 0.51% | |||||||||||
|
||||||||||||||
Portfolio turnover rate | 46% | 149% | 72% |
1. For the period from February 28, 2012 (inception of offering) to October 31, 2012. |
2. Per share amounts calculated based on the average shares outstanding during the period. |
3. 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. |
4. Annualized for periods less than one full year. |
5. Total expenses including indirect expenses from affiliated fund fees and expenses were as follows: |
Year Ended October 31, 2014 | 0.52 | % | ||||||
Year Ended October 31, 2013 | 0.51 | % | ||||||
Period Ended October 31, 2012 | 0.51 | % |
See accompanying Notes to Financial Statements.
22 OPPENHEIMER VALUE FUND
Class R | Year Ended October 31, 2014 |
Year Ended October 31, 2013 |
Year Ended October 31, 2012 |
Year Ended October 31, 2011 |
Year Ended October 29, 2010 1 |
|||||||||||||||
|
||||||||||||||||||||
Per Share Operating Data | ||||||||||||||||||||
Net asset value, beginning of period | $ | 28.11 | $ | 22.45 | $ | 20.54 | $ | 20.07 | $ | 18.18 | ||||||||||
|
||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income2 | 0.32 | 0.25 | 0.26 | 0.13 | 0.09 | |||||||||||||||
Net realized and unrealized gain | 3.02 | 5.64 | 1.84 | 0.43 | 2.04 | |||||||||||||||
|
|
|||||||||||||||||||
Total from investment operations | 3.34 | 5.89 | 2.10 | 0.56 | 2.13 | |||||||||||||||
|
||||||||||||||||||||
Dividends and/or distributions to shareholders: | ||||||||||||||||||||
Dividends from net investment income | (0.53) | (0.23) | (0.19) | (0.09) | (0.24) | |||||||||||||||
|
||||||||||||||||||||
Net asset value, end of period | $ | 30.92 | $ | 28.11 | $ | 22.45 | $ | 20.54 | $ | 20.07 | ||||||||||
|
|
|||||||||||||||||||
|
||||||||||||||||||||
Total Return, at Net Asset Value3 | 12.01% | 26.54% | 10.34% | 2.81% | 11.80% | |||||||||||||||
|
||||||||||||||||||||
Ratios/Supplemental Data | ||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 62,326 | $ | 68,955 | $ | 77,880 | $ | 92,326 | $ | 110,161 | ||||||||||
|
||||||||||||||||||||
Average net assets (in thousands) | $ | 64,460 | $ | 75,637 | $ | 85,585 | $ | 104,698 | $ | 111,359 | ||||||||||
|
||||||||||||||||||||
Ratios to average net assets:4 | ||||||||||||||||||||
Net investment income | 1.07% | 1.02% | 1.21% | 0.61% | 0.48% | |||||||||||||||
Total expenses5 | 1.21% | 1.24% | 1.31% | 1.30% | 1.22% | |||||||||||||||
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses | 1.21% | 1.24% | 1.31% | 1.30% | 1.22% | |||||||||||||||
|
||||||||||||||||||||
Portfolio turnover rate | 46% | 149% | 72% | 91% | 99% |
1. October 29, 2010 represents the last business day of the Funds reporting period. |
2. Per share amounts calculated based on the average shares outstanding during the period. |
3. 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. |
4. Annualized for periods less than one full year. |
5. Total expenses including indirect expenses from affiliated fund fees and expenses were as follows: |
Year Ended October 31, 2014 | 1.21 | % | ||||||
Year Ended October 31, 2013 | 1.24 | % | ||||||
Year Ended October 31, 2012 | 1.31 | % | ||||||
Year Ended October 31, 2011 | 1.30 | % | ||||||
Year Ended October 29, 2010 | 1.22 | % |
See accompanying Notes to Financial Statements.
23 OPPENHEIMER VALUE FUND
FINANCIAL HIGHLIGHTS Continued
Class Y | Year Ended October 31, 2014 |
Year Ended October 31, 2013 |
Year Ended October 31, 2012 |
Year Ended October 31, 2011 |
Year Ended October 29, 2010 1 |
|||||||||||||||
|
||||||||||||||||||||
Per Share Operating Data | ||||||||||||||||||||
Net asset value, beginning of period | $ | 29.30 | $ | 23.43 | $ | 21.44 | $ | 20.94 | $ | 18.94 | ||||||||||
|
||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income2 | 0.52 | 0.46 | 0.42 | 0.29 | 0.23 | |||||||||||||||
Net realized and unrealized gain | 3.11 | 5.82 | 1.92 | 0.46 | 2.10 | |||||||||||||||
|
|
|||||||||||||||||||
Total from investment operations | 3.63 | 6.28 | 2.34 | 0.75 | 2.33 | |||||||||||||||
|
||||||||||||||||||||
Dividends and/or distributions to shareholders: | ||||||||||||||||||||
Dividends from net investment income | (0.79) | (0.41) | (0.35) | (0.25) | (0.33) | |||||||||||||||
|
||||||||||||||||||||
Net asset value, end of period | $ | 32.14 | $ | 29.30 | $ | 23.43 | $ | 21.44 | $ | 20.94 | ||||||||||
|
|
|||||||||||||||||||
|
||||||||||||||||||||
Total Return, at Net Asset Value3 | 12.58% | 27.31% | 11.13% | 3.59% | 12.43% | |||||||||||||||
|
||||||||||||||||||||
Ratios/Supplemental Data |
||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 106,354 | $ | 393,902 | $ | 1,391,177 | $ | 1,395,131 | $ | 1,319,618 | ||||||||||
|
||||||||||||||||||||
Average net assets (in thousands) | $ | 206,569 | $ | 1,013,582 | $ | 1,401,244 | $ | 1,440,060 | $ | 1,035,895 | ||||||||||
|
||||||||||||||||||||
Ratios to average net assets:4 | ||||||||||||||||||||
Net investment income | 1.69% | 1.80% | 1.92% | 1.31% | 1.17% | |||||||||||||||
Total expenses5 | 0.71% | 0.58% | 0.59% | 0.58% | 0.60% | |||||||||||||||
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses | 0.71% | 0.58% | 0.59% | 0.58% | 0.60% | |||||||||||||||
|
||||||||||||||||||||
Portfolio turnover rate | 46% | 149% | 72% | 91% | 99% |
1. October 29, 2010 represents the last business day of the Funds reporting period. |
2. Per share amounts calculated based on the average shares outstanding during the period. |
3. 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. |
4. Annualized for periods less than one full year. |
5. Total expenses including indirect expenses from affiliated fund fees and expenses were as follows: |
Year Ended October 31, 2014 | 0.71 | % | ||||||
Year Ended October 31, 2013 | 0.58 | % | ||||||
Year Ended October 31, 2012 | 0.59 | % | ||||||
Year Ended October 31, 2011 | 0.58 | % | ||||||
Year Ended October 29, 2010 | 0.60 | % |
See accompanying Notes to Financial Statements.
24 OPPENHEIMER VALUE FUND
NOTES TO FINANCIAL STATEMENTS October 31, 2014
1. Significant Accounting Policies
Oppenheimer Value Fund (the Fund), a series of Oppenheimer Series Fund, Inc., is registered under the Investment Company Act of 1940 (1940 Act), as amended, as a diversified open-end management investment company. 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. As of October 31, 2014, approximately 59% of the shares of the fund were owned by the Manager, other funds advised or sub-advised by the Manager or an affiliate of the Manager.
The Fund offers Class A, Class C, Class I, Class R and Class Y shares, and previously offered Class B shares for new purchase through June 29, 2012. Subsequent to that date, no new purchases of Class B shares are permitted, however reinvestment of dividend and/or capital gain distributions and exchanges of Class B shares into and from other Oppenheimer funds will be allowed. As of July 1, 2014, Class N shares were renamed Class R shares. Class N shares subject to a contingent deferred sales charge (CDSC) on July 1, 2014, will continue to be subject to a CDSC after the shares are renamed. Purchases of Class R shares occurring on or after July 1, 2014, will not be subject to a CDSC upon redemption. 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, and Class B shares were sold, without a front-end sales charge but may be subject to a contingent deferred sales charge (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, B, 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. Class B shares will automatically convert to Class A shares 72 months after the date of purchase.
The following is a summary of significant accounting policies consistently followed by the Fund.
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.
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
25 OPPENHEIMER VALUE FUND
NOTES TO FINANCIAL STATEMENTS Continued
1. Significant Accounting Policies (Continued)
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.
Investment in Oppenheimer Institutional Money Market Fund. The Fund is permitted to invest daily available cash balances in an affiliated money market fund. The Fund may invest the available cash in Class E shares of Oppenheimer Institutional Money Market Fund (IMMF) to seek current income while preserving liquidity or for defensive purposes. IMMF is a registered open-end management investment company, regulated as a money market fund under the 1940 Act. The Manager is the investment adviser of IMMF, and the Sub-Adviser provides investment and related advisory services to IMMF. When applicable, the Funds investment in IMMF is included in the Statement of Investments. Shares of IMMF are valued at their net asset value per share. As a shareholder, the Fund is subject to its proportional share of IMMFs Class E expenses, including its management fee. 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 IMMF.
Allocation of Income, Expenses, Gains and Losses. Income, expenses (other than those attributable to a specific class), gains and losses are allocated on a daily basis to each class of shares based upon the relative proportion of net assets represented by such class. Operating expenses directly attributable to a specific class are charged against the operations of that class.
Federal Taxes. The Fund intends to comply with provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its investment company taxable income, including any net realized gain on investments not offset by capital loss carryforwards, if any, to shareholders. Therefore, no federal income or excise tax provision is required. 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 remain open for the three preceding fiscal reporting period ends.
The tax components of capital shown in the following table represent distribution requirements the Fund must satisfy under the income tax regulations, losses the Fund may be able to offset against income and gains realized in future years and unrealized appreciation or depreciation of securities and other investments for federal income tax purposes.
Undistributed Net Investment Income |
Undistributed Long-Term Gain |
Accumulated Loss Carryforward1,2,3 |
Net Unrealized Appreciation Other Investments for Federal Income Tax Purposes |
|||||||||
$664,625 |
$ | | $ | 212,919,766 | $ | 411,440,279 |
26 OPPENHEIMER VALUE FUND
1. Significant Accounting Policies (Continued)
1. As of October 31, 2014, the Fund had $212,919,766 of net capital loss carryforward available to offset future realized capital gains, if any, and thereby reduce future taxable gain distributions. Details of the capital loss carryforwards are included in the table below. Capital loss carryovers with no expiration, if any, must be utilized prior to those with expiration dates.
Expiring | ||||
|
||||
2017 | $ | 212,919,766 |
2. During the fiscal year ended October 31, 2014, the Fund utilized $131,986,439 of capital loss carryforward to offset capital gains realized in that fiscal year.
3. During the fiscal year ended October 31, 2013, the Fund utilized $400,120,941 of capital loss carryforward to offset capital gains realized in that fiscal year.
Net investment income (loss) and net realized gain (loss) may differ for financial statement and tax purposes. The character of dividends and distributions made during the fiscal year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. Also, due to timing of dividends and distributions, the fiscal year in which amounts are distributed may differ from the fiscal year in which the income or net realized gain was recorded by the Fund.
The tax character of distributions paid during the years ended October 31, 2014 and October 31, 2013 was as follows:
Year Ended October 31, 2014 |
Year Ended October 31, 2013 |
|||||||
Distributions paid from: |
||||||||
Ordinary income |
$ | 59,497,939 | $ | 34,124,992 |
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 as of October 31, 2014 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 | $ | 1,817,896,574 | ||
|
|
|||
Gross unrealized appreciation | $ | 423,238,454 | ||
Gross unrealized depreciation | (11,798,175) | |||
|
|
|||
Net unrealized appreciation | $ | 411,440,279 | ||
|
|
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. generally accepted accounting principles, 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.
27 OPPENHEIMER VALUE FUND
NOTES TO FINANCIAL STATEMENTS Continued
1. Significant Accounting Policies (Continued)
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.
Custodian Fees. Custodian fees and expenses in the Statement of Operations may include interest expense incurred by the Fund on any cash overdrafts of its custodian account during the period. Such cash overdrafts may result from the effects of failed trades in portfolio securities and from cash outflows resulting from unanticipated shareholder redemption activity. The Fund pays interest to its custodian on such cash overdrafts, to the extent they are not offset by positive cash balances maintained by the Fund, at a rate equal to the Federal Funds Rate plus 0.50%. The Reduction to custodian expenses line item, if applicable, represents earnings on cash balances maintained by the Fund during the period. Such interest expense and other custodian fees may be paid with these earnings.
Security Transactions. Security transactions are recorded on the trade date. Realized gains and losses on securities sold are determined on the basis of identified cost.
Indemnifications. The 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.
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 increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.
2. Securities Valuation
The Fund calculates the net asset value of its shares as of the close of the New York Stock Exchange (the Exchange), normally 4:00 P.M. Eastern time, on each day the Exchange is open for trading.
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
28 OPPENHEIMER VALUE FUND
2. Securities Valuation (Continued)
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 last sale price on the prior trading day, if it is within the spread of the current days closing bid and asked prices, and if not, at the current days closing bid price. 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) using 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.
29 OPPENHEIMER VALUE FUND
NOTES TO FINANCIAL STATEMENTS Continued
2. Securities Valuation (Continued)
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 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
30 OPPENHEIMER VALUE FUND
2. Securities Valuation (Continued)
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 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 table below categorizes amounts that are included in the Funds Statement of Assets and Liabilities as of October 31, 2014 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 |
$ | 238,111,251 | $ | | $ | | $ | 238,111,251 | ||||||||
Consumer Staples |
181,200,845 | | | 181,200,845 | ||||||||||||
Energy |
234,174,442 | | | 234,174,442 | ||||||||||||
Financials |
542,412,977 | | | 542,412,977 | ||||||||||||
Health Care |
317,869,692 | | | 317,869,692 | ||||||||||||
Industrials |
212,634,499 | | | 212,634,499 | ||||||||||||
Information Technology |
321,442,036 | | | 321,442,036 | ||||||||||||
Materials |
61,130,638 | | | 61,130,638 | ||||||||||||
Telecommunication Services |
50,980,837 | | | 50,980,837 | ||||||||||||
Utilities |
55,450,850 | | | 55,450,850 | ||||||||||||
Investment Company |
13,928,786 | | | 13,928,786 | ||||||||||||
|
|
|||||||||||||||
Total Assets |
$ | 2,229,336,853 | $ | | $ | | $ | 2,229,336,853 | ||||||||
|
|
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.
3. 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:
31 OPPENHEIMER VALUE FUND
NOTES TO FINANCIAL STATEMENTS Continued
3. Shares of Beneficial Interest (Continued)
Year Ended October 31, 2014 | Year Ended October 31, 2013 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
|
||||||||||||||||
Class A |
||||||||||||||||
Sold |
2,307,853 | $ | 69,737,421 | 3,433,605 | $ | 87,410,301 | ||||||||||
Dividends and/or distributions reinvested |
470,434 | 13,977,320 | 345,981 | 7,763,809 | ||||||||||||
Redeemed |
(4,483,352 | ) | (135,294,029 | ) | (9,009,553 | ) | (228,383,668) | |||||||||
|
|
|||||||||||||||
Net decrease |
(1,705,065 | ) | $ | (51,579,288 | ) | (5,229,967 | ) | $ | (133,209,558) | |||||||
|
|
|||||||||||||||
|
||||||||||||||||
Class B |
||||||||||||||||
Sold |
19,981 | $ | 582,237 | 44,142 | $ | 1,118,695 | ||||||||||
Dividends and/or distributions reinvested |
6,037 | 176,493 | 3,151 | 69,761 | ||||||||||||
Redeemed |
(287,042 | ) | (8,521,325 | ) | (398,747 | ) | (9,860,306) | |||||||||
|
|
|||||||||||||||
Net decrease |
(261,024 | ) | $ | (7,762,595 | ) | (351,454 | ) | $ | (8,671,850) | |||||||
|
|
|||||||||||||||
|
||||||||||||||||
Class C |
||||||||||||||||
Sold |
491,417 | $ | 14,196,521 | 586,387 | $ | 14,396,430 | ||||||||||
Dividends and/or distributions reinvested |
52,128 | 1,483,853 | 32,564 | 703,051 | ||||||||||||
Redeemed |
(906,353 | ) | (26,188,300 | ) | (1,248,353 | ) | (30,270,095) | |||||||||
|
|
|||||||||||||||
Net decrease |
(362,808 | ) | $ | (10,507,926 | ) | (629,402 | ) | $ | (15,170,614) | |||||||
|
|
|||||||||||||||
|
||||||||||||||||
Class I |
||||||||||||||||
Sold |
9,716,639 | $ | 289,170,670 | 37,803,293 | $ | 1,002,544,434 | ||||||||||
Dividends and/or distributions reinvested |
1,122,941 | 34,055,010 | | | ||||||||||||
Redeemed |
(6,619,179 | ) | (202,488,498 | ) | (2,818,070 | ) | (79,229,347) | |||||||||
|
|
|||||||||||||||
Net increase |
4,220,401 | $ | 120,737,182 | 34,985,223 | $ | 923,315,087 | ||||||||||
|
|
|||||||||||||||
|
||||||||||||||||
Class R1 |
||||||||||||||||
Sold |
406,939 | $ | 11,826,876 | 478,204 | $ | 11,804,256 | ||||||||||
Dividends and/or distributions reinvested |
39,077 | 1,140,096 | 34,163 | 752,946 | ||||||||||||
Redeemed |
(883,529 | ) | (25,724,301 | ) | (1,528,353 | ) | (38,426,056) | |||||||||
|
|
|||||||||||||||
Net decrease |
(437,513 | ) | $ | (12,757,329 | ) | (1,015,986 | ) | $ | (25,868,854) | |||||||
|
|
|||||||||||||||
|
||||||||||||||||
Class Y |
||||||||||||||||
Sold |
1,509,814 | $ | 46,538,529 | 5,495,638 | $ | 138,582,358 | ||||||||||
Dividends and/or distributions reinvested |
259,330 | 7,739,403 | 1,049,094 | 23,971,808 | ||||||||||||
Redeemed |
(11,903,476 | ) | (362,861,929 | ) | (52,478,196 | ) | (1,360,978,033) | |||||||||
|
|
|||||||||||||||
Net decrease |
(10,134,332 | ) | $ | (308,583,997 | ) | (45,933,464 | ) | $ | (1,198,423,867) | |||||||
|
|
1. Effective July 1, 2014, Class N shares were renamed Class R.
32 OPPENHEIMER VALUE FUND
4. Purchases and Sales of Securities
The aggregate cost of purchases and proceeds from sales of securities, other than short-term obligations and investments in IMMF, for the year ended October 31, 2014 were as follows:
Purchases | Sales | |||||||||
|
||||||||||
Investment securities |
$ | 1,057,778,896 | $ | 1,349,069,373 |
5. 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 $300 million |
0.625% | |||
Next $100 million |
0.500 | |||
Next $4.6 billion |
0.450 | |||
Over $5 billion |
0.430 |
The Funds management fee for the fiscal year ended October 31, 2014 was 0.48% 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.
Trustees Compensation. The Fund has adopted an unfunded retirement plan (the Plan) for the Funds Independent Trustees. Benefits are based on years of service and fees paid to each Trustee during their period of service. The Plan was frozen with respect to adding new participants effective December 31, 2006 (the Freeze Date) and existing Plan Participants as of the Freeze Date will continue to receive accrued benefits under the Plan. Active
33 OPPENHEIMER VALUE FUND
NOTES TO FINANCIAL STATEMENTS Continued
5. Fees and Other Transactions with Affiliates (Continued)
Independent Trustees as of the Freeze Date have each elected a distribution method with respect to their benefits under the Plan. During the year ended October 31, 2014, the Funds projected benefit obligations, payments to retired Trustees and accumulated liability were as follows:
Projected Benefit Obligations Increased | $ | 4,063 | ||
Payments Made to Retired Trustees | 17,686 | |||
Accumulated Liability as of October 31, 2014 | 165,000 |
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 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 B, Class C and Class R Shares. The Fund has adopted Distribution and Service Plans (the Plans) for Class B, 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 B and 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
34 OPPENHEIMER VALUE FUND
5. Fees and Other Transactions with Affiliates (Continued)
Plans continue in effect from year to year only if the Funds Board of Trustees vote annually to approve its 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.
Year Ended | Class A Front-End Sales Charges Retained by Distributor |
Class A Contingent Deferred Sales Charges Retained by Distributor |
Class B 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, 2014 |
$ | 162,953 | $ | 367 | $ | 17,514 | $ | 4,914 | $ | 709 |
Waivers and Reimbursements of Expenses. 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 IMMF. During the year ended October 31, 2014, the Manager waived fees and/or reimbursed the Fund $17,261 for IMMF management fees.
The Transfer Agent has contractually agreed to limit transfer and shareholder servicing agent fees for Classes B, C, R and Y shares to 0.35% of average annual net assets per class and for Class A shares to 0.30% of average annual net assets of the class. The limit was removed on February 28, 2014.
These undertakings may be modified or terminated as set forth according to the terms in the prospectus.
6. Pending Litigation
In 2009, seven class action lawsuits were filed in the U.S. District Court for the District of Colorado against OppenheimerFunds, Inc. (OFI), OppenheimerFunds Distributor, Inc., the Funds principal underwriter and distributor (the Distributor), and certain funds (but not including the Fund) advised by OFI Global Asset Management, Inc. and distributed by the Distributor (the Defendant Funds). The lawsuits also named as defendants certain officers and current and former trustees of the respective Defendant Funds. The lawsuits raised claims under federal securities laws and alleged, among other things, that the disclosure documents of the respective Defendant Funds contained misrepresentations and omissions and that the respective Defendant Funds investment policies were not followed. The plaintiffs in these actions sought unspecified damages, equitable relief and awards of attorneys fees and litigation expenses. The Defendant Funds Boards of Trustees also engaged counsel to represent the Funds and the present and former Independent Trustees named in those suits. In March 2014, the parties in six of these lawsuits executed stipulations and agreements of settlement resolving those actions. In July 2014, the court entered an order and final
35 OPPENHEIMER VALUE FUND
NOTES TO FINANCIAL STATEMENTS Continued
6. Pending Litigation (Continued)
judgment approving the settlements as fair, reasonable and adequate. The settlements do not resolve a seventh outstanding lawsuit relating to Oppenheimer Rochester California Municipal Fund (the California Fund Suit). OFI believes the California Fund Suit is without legal merit and is defending the suit vigorously. While it is premature to render any opinion as to the outcome in the California Fund Suit, or whether any costs that OFI may bear in defending the California Fund Suit might not be reimbursed by insurance, OFI believes the California Fund Suit should not impair the ability of OFI or the Distributor to perform their respective duties to the Fund, and that the outcome of the California Fund Suit should not have any material effect on the operations of any of the Oppenheimer Funds.
36 OPPENHEIMER VALUE FUND
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
The Board of Trustees and Shareholders of Oppenheimer Series Fund, Inc.:
We have audited the accompanying statement of assets and liabilities of Oppenheimer Value Fund (a portfolio of Oppenheimer Series Fund, Inc.), including the statement of investments, as of October 31, 2014, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years or periods in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Funds management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of October 31, 2014, by correspondence with the custodian, transfer agent and brokers, or by other appropriate auditing procedures where replies from brokers were not received. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Oppenheimer Value Fund as of October 31, 2014, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years or periods in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.
KPMG LLP
Denver, Colorado
December 22, 2014
37 OPPENHEIMER VALUE FUND
FEDERAL INCOME TAX INFORMATION Unaudited
In early 2014, if applicable, shareholders of record received information regarding all dividends and distributions paid to them by the Fund during calendar year 2013.
Dividends, if any, paid by the Fund during the fiscal year ended October 31, 2014 which are not designated as capital gain distributions should be multiplied by the maximum amount allowable but not less than 95.44% to arrive at the amount eligible for the corporate dividend-received deduction.
A portion, if any, of the dividends paid by the Fund during the fiscal year ended October 31, 2014 which are not designated as capital gain distributions are eligible for lower individual income tax rates to the extent that the Fund has received qualified dividend income as stipulated by recent tax legislation. The maximum amount allowable but not less than $51,721,961 of the Funds fiscal year taxable income may be eligible for the lower individual income tax rates. In early 2014, shareholders of record received information regarding the percentage of distributions that are eligible for lower individual income tax rates.
Recent tax legislation allows a regulated investment company to designate distributions not designated as capital gain distributions, as either interest related dividends or short-term capital gain dividends, both of which are exempt from the U.S. withholding tax applicable to non U.S. taxpayers. For the fiscal year ended October 31, 2014, the maximum amount allowable but not less than $9,269 of the ordinary distributions to be paid by the Fund qualifies as an interest related dividend.
The foregoing information is presented to assist shareholders in reporting distributions received from the Fund to the Internal Revenue Service. Because of the complexity of the federal regulations which may affect your individual tax return and the many variations in state and local tax regulations, we recommend that you consult your tax advisor for specific guidance.
38 OPPENHEIMER 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 renew the Agreements. 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 Adviser, Sub-Adviser 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 investment performance of the Fund and the Managers, (iii) the fees and expenses of the Fund, including comparative 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 Sub-Advisers 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; securities trading services; oversight of third-party service providers; monitoring compliance with applicable Fund policies and procedures and adherence to the Funds investment restrictions; and risk management. The Managers are responsible for providing certain administrative services to the Fund as well. Those services include providing and supervising all administrative and clerical personnel who are necessary in order to provide effective corporate administration for the Fund; compiling and maintaining records with respect to the Funds operations; preparing and filing reports required by the Securities and Exchange Commission; preparing periodic reports regarding the operations of the Fund for its shareholders; preparing proxy materials for shareholder meetings; and preparing the registration statements required by Federal and state securities laws for the sale of the Funds shares. The Managers also provide the Fund with office space, facilities and equipment.
The Board also considered the quality of the services provided and the quality of the Managers resources that are available to the Fund. The Board took account of the fact that the Sub-Adviser has had 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 Sub-Advisers advisory, administrative, accounting, legal, compliance
39 OPPENHEIMER VALUE FUND
BOARD APPROVAL OF THE FUNDS INVESTMENT ADVISORY AND
SUB-ADVISORY AGREEMENTS Unaudited / Continued
services and risk management, 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 Laton Spahr, 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 its members have become knowledgeable about 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 Adviser and the Fund. Throughout the year, the Adviser provided information on the investment performance of the Fund, including comparative performance information. The Board also reviewed information, prepared by the Adviser and by the independent consultant, comparing the Funds historical performance to relevant market indices and to the performance of other retail funds in the large value category. The Board noted that the Funds five-year performance was better than its category median although its one-, three, and ten-year performance was below its category median.
Costs of Services by the Adviser. 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 large value funds with comparable asset levels and distribution features. The Funds contractual management fees and total expenses were lower than its peer group median and category median.
Economies of Scale and Profits Realized by the Managers. The Board considered information regarding OFI Globals costs in serving as the Funds investment 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 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.
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).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.
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.
40 OPPENHEIMER VALUE FUND
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, 2015. 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.
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PORTFOLIO PROXY VOTING POLICIES AND PROCEDURES; UPDATES
TO STATEMENTS OF INVESTMENTS Unaudited
The Fund has adopted Portfolio Proxy Voting Policies and Procedures under which the Fund votes proxies relating to securities (portfolio proxies) held by the Fund. A description of the Funds Portfolio Proxy Voting Policies and Procedures 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.
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TRUSTEES AND OFFICERS Unaudited
Name, Position(s) Held with the Fund, Length of Service, Year of Birth |
Principal Occupation(s) During the Past 5 Years; Other Trusteeships/Directorships Held; Number of Portfolios in the Fund Complex Currently Overseen | |
INDEPENDENT TRUSTEES | The address of each Trustee in the chart below is 6803 S. Tucson Way, Centennial, Colorado 80112-3924. Each Trustee serves for an indefinite term, or until his or her resignation, retirement, death or removal. | |
Brian F. Wruble, Chairman of the Board of Trustees (since 2007) and Trustee (since 2005) Year of Birth: 1943 |
Director and Vice Chairman of Community Foundation of the Florida Keys (non-profit) (since July 2012); Trustee of the Board of Trustees, The Jackson Laboratory (non-profit) (1991-2011 and since May 2014); Chairman Emeritus (since August 2011) of The Jackson Laboratory (non-profit); Director of Special Value Opportunities Fund, LLC (registered investment company) (affiliate of the Sub-Advisers parent company) (since September 2004); Member of Zurich Insurance Groups Investment Management Advisory Council (insurance) (since 2004); Treasurer (since 2007) and Trustee of the Institute for Advanced Study (non-profit educational institute) (since May 1992); General Partner of Odyssey Partners, L.P. (hedge fund) (September 1995-December 2007); Special Limited Partner of Odyssey Investment Partners, LLC (private equity investment) (January 1999-September 2004). Oversees 52 portfolios in the OppenheimerFunds complex. Mr. Wruble has served on the Boards of certain Oppenheimer funds since April 2001, during which time he has become familiar with the Funds (and other Oppenheimer funds) financial, accounting, regulatory and investment matters and has contributed to the Boards deliberations. | |
David K. Downes, Trustee (since 2007) Year of Birth: 1940 |
Director of THL Credit Inc. (since June 2009); Chief Executive Officer and Board Member of Community Capital Management (investment management company) (since January 2004); President of The Community Reinvestment Act Qualified Investment Fund (investment management company) (since 2004); Director of Actua Corporation (information technology company) (since October 2003); formerly, Independent Chairman GSK Employee Benefit Trust (April 2006-June2013); Director of Correctnet (January 2006-2007); Independent Chairman of the Board of Trustees of Quaker Investment Trust (registered investment company) (2004-2007); Chief Operating Officer and Chief Financial Officer of Lincoln National Investment Companies, Inc. (subsidiary of Lincoln National Corporation, a publicly traded company) and Delaware Investments U.S., Inc. (investment management subsidiary of Lincoln National Corporation) (1993-2003); President, Chief Executive Officer and Trustee of Delaware Investment Family of Funds (1993-2003); President and Board Member of Lincoln National Convertible Securities Funds, Inc. and the Lincoln National Income Funds, TDC (1993-2003); Chairman and Chief Executive Officer of Retirement Financial Services, Inc. (registered transfer agent and investment adviser and subsidiary of Delaware Investments U.S., Inc.) (1993-2003); President and Chief Executive Officer of Delaware Service Company, Inc. (1995-2003); Chief Administrative Officer, Chief Financial Officer, Vice Chairman and Director of Equitable Capital Management Corporation (investment subsidiary of Equitable Life Assurance Society) (1985-1992); Corporate Controller of Merrill Lynch Company (financial services holding company) (1977-1985); held the following positions at the Colonial Penn Group, Inc. (insurance company): Corporate Budget Director (1974-1977), Assistant Treasurer (1972-1974) and Director of Corporate Taxes (1969-1972); held the following positions at Price Waterhouse Company (financial services firm): Tax Manager (1967-1969), Tax |
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TRUSTEES AND OFFICERS Unaudited / Continued
David K. Downes, Continued |
Senior (1965-1967) and Staff Accountant (1963-1965); United States Marine Corps (1957-1959). Oversees 52 portfolios in the OppenheimerFunds complex. Mr. Downes has served on the Boards of certain Oppenheimer funds since December 2005, during which time he has become familiar with the Funds (and other Oppenheimer funds) financial, accounting, regulatory and investment matters and has contributed to the Boards deliberations. | |
Matthew P. Fink, Trustee (since 2005) Year of Birth: 1941 |
Trustee of the Committee for Economic Development (policy research foundation) (2005-2011); Director of ICI Education Foundation (education foundation) (October 1991-August 2006); President of the Investment Company Institute (trade association) (October 1991-June 2004); Director of ICI Mutual Insurance Company (insurance company) (October 1991-June 2004); Author of The Rise of Mutual Funds: An Insiders View published by Oxford University Press (second edition 2010). Oversees 52 portfolios in the OppenheimerFunds complex. Mr. Fink has served on the Boards of certain Oppenheimer funds since January 2005, during which time he has become familiar with the Funds (and other Oppenheimer funds) financial, accounting, regulatory and investment matters and has contributed to the Boards deliberations. | |
Edmund P. Giambastiani, Jr., Trustee (since 2013) Year of Birth: 1948 |
Advisory Board Member of the Maxwell School of Citizenship and Public Affairs of Syracuse University (since April 2012); Director of Mercury Defense Systems Inc. (information technology) (August 2011-February 2013); Trustee of the U.S. Naval Academy Foundation (since November 2010); Advisory Board Member of the Massachusetts Institute of Technology Lincoln Laboratory (federally-funded research development center) (since May 2010); Director of The Boeing Company (aerospace and defense) (since October 2009); Trustee of MITRE Corporation (federally-funded research development center) (since September 2008); Independent Director of QinetiQ Group Plc (defense technology and security) (February 2008-August 2011); Director of Monster Worldwide, Inc. (on-line career services) (since January 2008, Lead Director since June 2011); Chairman of Alenia North America, Inc. (military and defense products) (January 2008-October 2009); Director of SRA International, Inc. (information technology and services) (January 2008-July 2011); President of Giambastiani Group LLC (national security and energy consulting) (since October 2007); United States Navy, career nuclear submarine officer (June 1970-October 2007), Vice Chairman of the Joint Chiefs of Staff (2005-October 2007), NATO Supreme Allied Commander Transformation (2003-2005), Commander, U.S. Joint Forces Command (2002-2005). Since his retirement from the U.S. Navy in October 2007, Admiral Giambastiani has also served on numerous U.S. Government advisory boards, investigations and task forces for the Secretaries of Defense, State and Interior and the Central Intelligence Agency. Oversees 52 portfolios in the OppenheimerFunds complex. Admiral Giambastiani has served on the Boards of certain Oppenheimer funds since February 2013, including as an Advisory Board Member for certain Oppenheimer funds, during which time he has become familiar with the Funds (and other Oppenheimer funds) financial, accounting, regulatory and investment matters and has contributed to the Boards deliberations. For purposes of this report, Admiral Giambastiani is identified as a Trustee. | |
Elizabeth Krentzman, Trustee (since 2014) Year of Birth: 1959 |
Advisory Board Member of the Securities and Exchange Commission Historical Society (since 2007); held the following positions at Deloitte & Touche LLP: Principal and Chief Regulatory Advisor for Asset Management Services (2007 - |
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Elizabeth Krentzman, Continued |
2014) and U.S. Mutual Fund Leader (2011 - 2014); General Counsel of the Investment Company Institute (trade association) (June 2004 - April 2007); held the following positions at Deloitte & Touche LLP: National Director of the Investment Management Regulatory Consulting Practice (1997 - 2004), Principal (2003 - 2004), Director (1998 - 2003) and Senior Manager (1997 - 1998); Assistant Director of the Division of Investment Management - Office of Disclosure and Investment Adviser Regulation (1996 - 1997) and various positions with the Division of Investment Management Office of Regulatory Policy (1991 - 1996) of the U.S. Securities and Exchange Commission; Associate at Ropes & Gray (1987 - 1991); former Chair of the Investment Management Subcommittee of the Washington, D.C. Bar. Oversees 52 portfolios in the OppenheimerFunds complex. Ms. Krentzman has served on the Boards of certain Oppenheimer funds since August 2014, during which time she has become familiar with the Funds (and other Oppenheimer funds) financial, accounting, regulatory and investment matters and has contributed to the Boards deliberations. | |
Mary F. Miller, Trustee (since 2004) Year of Birth: 1942 |
Trustee of International House (not-for-profit) (since June 2007); Trustee of the American Symphony Orchestra (not-for-profit) (October 1998-November 2011); and Senior Vice President and General Auditor of American Express Company (financial services company) (July 1998-February 2003). Oversees 52 portfolios in the OppenheimerFunds complex. Ms. Miller has served on the Boards of certain Oppenheimer funds since August 2004, during which time she has become familiar with the Funds (and other Oppenheimer funds) financial, accounting, regulatory and investment matters and has contributed to the Boards deliberations. | |
Joel W. Motley, Trustee (since 2002) Year of Birth: 1952 |
Member of the Vestry of Trinity Wall Street (since April 2012); Director of Southern Africa Legal Services Foundation (since March 2012); Board Member of Pulitzer Center for Crisis Reporting (non-profit journalism) (since December 2010); Managing Director of Public Capital Advisors, LLC (privately-held financial advisor) (since January 2006); Managing Director of Carmona Motley, Inc. (privately-held financial advisor) (since January 2002); Director of Columbia Equity Financial Corp. (privately-held financial advisor) (2002-2007); Managing Director of Carmona Motley Hoffman Inc. (privately-held financial advisor) (January 1998-December 2001); Member of the Finance and Budget Committee of the Council on Foreign Relations, Member of the Investment Committee and Board of Human Rights Watch and Member of the Investment Committee and Board of Historic Hudson Valley. Oversees 52 portfolios in the OppenheimerFunds complex. Mr. Motley has served on the Boards of certain Oppenheimer funds since October 2002, during which time he has become familiar with the Funds (and other Oppenheimer funds) financial, accounting, regulatory and investment matters and has contributed to the Boards deliberations. | |
Joanne Pace, Trustee (since 2012) Year of Birth: 1958 |
Board Director of Horizon Blue Cross Blue Shield of New Jersey (since November 2012); Advisory Board Director of The Alberleen Group LLC (since March 2012); Advisory Board Director of The Agile Trading Group LLC (since March 2012); Advisory Council Member of 100 Women in Hedge Funds (non-profit) (since December 2012); Advisory Council Member of Morgan Stanley Childrens Hospital (non-profit) (since May 2012); Board Director of The Komera Project (non-profit) (since April 2012); New York Advisory Board Director of Peace First (non-profit) (since March 2010); Senior Advisor of |
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TRUSTEES AND OFFICERS Unaudited / Continued
Joanne Pace, Continued |
SECOR Asset Management, LP (2010-2011); Managing Director and Chief Operating Officer of Morgan Stanley Investment Management (2006-2010); Partner and Chief Operating Officer of FrontPoint Partners, LLC (hedge fund) (2005-2006); held the following positions at Credit Suisse: Managing Director (2003-2005); Global Head of Human Resources and member of Executive Board and Operating Committee (2004-2005), Global Head of Operations and Product Control (2003-2004); held the following positions at Morgan Stanley: Managing Director (1997-2003), Controller and Principal Accounting Officer (1999-2003); Chief Financial Officer (temporary assignment) for the Oversight Committee, Long Term Capital Management (1998-1999). Lead Independent Director and Chair of the Audit and Nominating Committee of The Global Chartist Fund, LLC of Oppenheimer Asset Management (2011-2012); Board Director of Managed Funds Association (2008-2010); Board Director of Morgan Stanley Foundation (2007-2010) and Investment Committee Chair (2008-2010). Oversees 52 portfolios in the OppenheimerFunds complex. Ms. Pace has served on the Boards of certain Oppenheimer funds since November 2012, including as an Advisory Board Member for certain Oppenheimer funds, during which time she has become familiar with the Funds (and other Oppenheimer funds) financial, accounting, regulatory and investment matters and has contributed to the Boards deliberations. For purposes of this report, Ms. Pace is identified as a Trustee. | |
Peter I. Wold, Trustee (since 2005) Year of Birth: 1948 |
Director of Arch Coal, Inc. (since 2010); President of Wold Oil Properties, Inc. (oil and gas exploration and production company) (since 1994); Vice President of American Talc Company, Inc. (talc mining and milling) (since 1999); Managing Member of Hole-in-the-Wall Ranch (cattle ranching) (since 1979); Director and Chairman of Wyoming Enhanced Oil Recovery Institute Commission (enhanced oil recovery study) (2004-2012); Director and Chairman of the Denver Branch of the Federal Reserve Bank of Kansas City (1993-1999); and Director of PacifiCorp. (electric utility) (1995-1999). Oversees 52 portfolios in the OppenheimerFunds complex. Mr. Wold has served on the Boards of certain Oppenheimer funds since August 2005, during which time he has become familiar with the Funds (and other Oppenheimer funds) financial, accounting, regulatory and investment matters and has contributed to the Boards deliberations.
| |
INTERESTED TRUSTEE |
Mr. Glavin is an Interested Trustee because he is affiliated with the Manager and the Sub-Adviser by virtue of his positions as director of the Sub-Adviser, and as a shareholder of the Sub-Advisers parent company. As a Trustee, he serves for an indefinite term, or until his resignation, retirement, death or removal. Mr. Glavins address is 225 Liberty Street, 11th Floor, New York, New York 10281-1008. | |
William F. Glavin, Jr., Trustee (since 2013) Year of Birth: 1958 |
Chairman of the Sub-Adviser (since July 2014 and December 2009-December 2012) and Director of the Sub-Adviser (since January 2009); Chairman, Director and Chief Executive Officer (January 2013-June 2014) of the Manager; President of the Manager (January 2013-May 2013); Chief Executive Officer (January 2009-December 2012); President of the Sub-Adviser (May 2009-December 2012); Management Director (June 2009-June 2014), President (December 2009-June 2014) and Chief Executive Officer (January 2011-June 2014) of Oppenheimer Acquisition Corp. (OAC) (the Sub-Advisers parent holding company); Director of Oppenheimer Real Asset Management, Inc. (March 2010-June 2014); Executive Vice President (March 2006-February |
46 OPPENHEIMER VALUE FUND
William F. Glavin, Jr., Continued |
2009) and Chief Operating Officer (July 2007-February 2009) of Massachusetts Mutual Life Insurance Company (OACs parent company); Director (May 2004-March 2006) and Chief Operating Officer and Chief Compliance Officer (May 2004-January 2005), President (January 2005-March 2006) and Chief Executive Officer (June 2005-March 2006) of Babson Capital Management LLC; Director (March 2005-March 2006), President (May 2003-March 2006) and Chief Compliance Officer (July 2005-March 2006) of Babson Capital Securities, Inc. (a broker-dealer); President (May 2003-March 2006) of Babson Investment Company, Inc.; Director (May 2004-August 2006) of Babson Capital Europe Limited; Director (May 2004-October 2006) of Babson Capital Guernsey Limited; Director (May 2004-March 2006) of Babson Capital Management LLC; Non-Executive Director (March 2005-March 2007) of Baring Asset Management Limited; Director (February 2005-June 2006) Baring Pension Trustees Limited; Director and Treasurer (December 2003-November 2006) of Charter Oak Capital Management, Inc.; Director (May 2006-September 2006) of C.M. Benefit Insurance Company; Director (May 2008-June 2009) and Executive Vice President (June 2007-July 2009) of C.M. Life Insurance Company; President (March 2006-May 2007) of MassMutual Assignment Company; Director (January 2005-December 2006), Deputy Chairman (March 2005-December 2006) and President (February 2005-March 2005) of MassMutual Holdings (Bermuda) Limited; Director (May 2008-June 2009) and Executive Vice President (June 2007-July 2009) of MML Bay State Life Insurance Company; Chief Executive Officer and President (April 2007-January 2009) of MML Distributors, LLC; and Chairman (March 2006-December 2008) and Chief Executive Officer (May 2007-December 2008) of MML Investors Services, Inc. An officer of 91 portfolios in the OppenheimerFunds complex. Mr. Glavin has served on the Boards of certain Oppenheimer funds since December 2009, during which time he has become familiar with the Funds (and other Oppenheimer funds) financial, accounting, regulatory and investment matters and has contributed to the Boards deliberations.
| |
OTHER OFFICERS OF THE FUND | The addresses of the Officers in the chart below are as follows: for Messrs. Spahr, Steinmetz, Gabinet, Mss. Sexton and Picciotto, 225 Liberty Street, New York, New York 10281-1008, for Mr. Wixted, 6803 S. Tucson Way, Centennial, Colorado 80112-3924. Each Officer serves for an indefinite term or until his or her resignation, retirement, death or removal. | |
Laton Spahr, Vice President (since 2013) Year of Birth: 1975 |
Senior Vice President of the Sub-Adviser since March 2013. Senior portfolio manager (2003-2013) and equity analyst (2001-2002) for Columbia Management Investment Advisers, LLC. A portfolio manager and an officer of other portfolios in the OppenheimerFunds complex. | |
Arthur P. Steinmetz, President and Principal Executive Officer (since 2014) Year of Birth: 1958 |
CEO and Chairman of the Manager (since July 2014), President of the Manager (since May 2013), a Director of the Manager (since January 2013), Director of the Sub-Adviser (since July 2014), President, Management Director and CEO of Oppenheimer Acquisition Corp. (the Sub-Advisers parent holding company) (since July 2014), and President and Director of OFI SteelPath, Inc. (since January 2013). Chief Investment Officer of the OppenheimerFunds advisory entities from (January 2013-December 2013); Executive Vice President of the Manager (January 2013-May 2013); Chief Investment Officer of the Sub-Adviser (October 2010-December 2012); Chief Investment Officer, Fixed- |
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TRUSTEES AND OFFICERS Unaudited / Continued
Arthur P. Steinmetz, Continued |
Income, of the Sub-Adviser (April 2009-October 2010); Executive Vice President of the Sub-Adviser (October 2009-December 2012); Director of Fixed Income of the Sub-Adviser (January 2009-April 2009); and a Senior Vice President of the Sub-Adviser (March 1993-September 2009). An officer of 91 portfolios in the OppenheimerFunds complex. | |
Arthur S. Gabinet, Secretary and Chief Legal Officer (since 2011) Year of Birth: 1958 |
Executive Vice President, Secretary and General Counsel of the Manager (since January 2013); General Counsel OFI SteelPath, Inc. (since January 2013); Executive Vice President (May 2010-December 2012) and General Counsel (since January 2011) of the Sub-Adviser; General Counsel of the Distributor (since January 2011); General Counsel of Centennial Asset Management Corporation (January 2011-December 2012); Executive Vice President (January 2011-December 2012) and General Counsel of HarbourView Asset Management Corporation (since January 2011); Assistant Secretary (since January 2011) and Director (since January 2011) of OppenheimerFunds International Ltd. and OppenheimerFunds plc; Director of Oppenheimer Real Asset Management, Inc. (January 2011-December 2012) and General Counsel (since January 2011); Executive Vice President (January 2011-December 2011) and General Counsel of Shareholder Financial Services, Inc. and Shareholder Services, Inc. (since January 2011); Executive Vice President (January 2011-December 2012) and General Counsel of OFI Private Investments Inc. (since January 2011); Vice President of OppenheimerFunds Legacy Program (January 2011-December 2011); Executive Vice President (January 2011-December 2012) and General Counsel of OFI Institutional Asset Management, Inc. (since January 2011); General Counsel, Asset Management of the Sub-Adviser (May 2010-December 2010); Principal, The Vanguard Group (November 2005-April 2010); District Administrator, U.S. Securities and Exchange Commission (January 2003-October 2005). An officer of 91 portfolios in the OppenheimerFunds complex. | |
Jennifer Sexton, Vice President and Chief Business Officer (since 2014) Year of Birth: 1969 |
Senior Vice President of OppenheimerFunds Distributor, Inc. (since June 2014); Vice President of OppenheimerFunds Distributor, Inc. (April 2006-June 2014); Vice President of the Sub-Adviser (January 1998-March 2006); Assistant Vice President of the Sub-Adviser (October 1991-December 1998). An officer of 91 portfolios in the OppenheimerFunds complex. | |
Mary Ann Picciotto, Chief Compliance Officer and Chief Anti-Money Laundering Officer (since 2014) Year of Birth: 1973 |
Senior Vice President and Chief Compliance Officer of the Manager (since March 2014); Chief Compliance Officer of the Sub-Adviser, OFI SteelPath, Inc., OFI Global Trust Company, OFI Global Institutional, Inc., Oppenheimer Real Asset Management, Inc., OFI Private Investments, Inc., Harborview Asset Management Corporation, Trinity Investment Management Corporation, and Shareholder Services, Inc. (since March 2014); Managing Director of Morgan Stanley Investment Management Inc. and certain of its various affiliated entities; Chief Compliance Officer of various Morgan Stanley Funds (May 2010-January 2014); Chief Compliance Officer of Morgan Stanley Investment Management Inc. (April 2007-January 2014). An officer of 91 portfolios in the OppenheimerFunds complex. | |
Brian W. Wixted, Treasurer and Principal Financial & Accounting Officer (since 1999) Year of Birth: 1959 |
Senior Vice President of the Manager (since January 2013); Treasurer of the Sub-Adviser, HarbourView Asset Management Corporation, Shareholder Financial Services, Inc., Shareholder Services, Inc., and Oppenheimer Real Asset Management, Inc. (March 1999-June 2008), OFI Private Investments, Inc. (March 2000-June 2008), OppenheimerFunds International Ltd. and |
48 OPPENHEIMER VALUE FUND
Brian W. Wixted, Continued |
OppenheimerFunds plc (since May 2000), OFI Institutional Asset Management, Inc. (November 2000-June 2008), and OppenheimerFunds Legacy Program (charitable trust program established by the Sub-Adviser) (June 2003-December 2011); Treasurer and Chief Financial Officer of OFI Trust Company (since May 2000); Assistant Treasurer of Oppenheimer Acquisition Corporation (March 1999-June 2008). An officer of 91 portfolios in the OppenheimerFunds complex. |
The Funds Statement of Additional Information contains additional information about the Funds Trustees and Officers and is available without charge upon request, by calling 1.800.CALL OPP (225.5677).
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OPPENHEIMER VALUE FUND
Manager | OFI Global Asset Management, Inc. | |
Sub-Adviser | OppenheimerFunds, Inc. | |
Distributor | OppenheimerFunds Distributor, Inc. | |
Transfer and Shareholder Servicing Agent |
OFI Global Asset Management, Inc. | |
Sub-Transfer Agent | Shareholder Services, Inc. DBA OppenheimerFunds Services | |
Independent Registered Public Accounting Firm |
KPMG LLP | |
Legal Counsel | Kramer Levin Naftalis & Frankel LLP |
© 2014 OppenheimerFunds, Inc. All rights reserved.
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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 |
| A software program on our website, often referred to as a cookie, which indicates which parts of our site youve visited |
| When you set up challenge questions to reset your password online |
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 financial services or 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.
51 OPPENHEIMER 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.
We do not guarantee or warrant that any part of our website, including files available for download, are free of viruses or other harmful code. It is your responsibility to take appropriate precautions, such as use of an anti-virus software package, to protect your computer hardware and software.
| All transactions, including redemptions, exchanges and purchases, are secured by SSL and 128-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, do not allow it to be used by anyone else. 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 2014. 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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Item 2. Code of Ethics.
The registrant has adopted a code of ethics that applies to the registrants principal executive officer, principal financial officer, principal accounting officer or controller or persons performing similar functions.
Item 3. Audit Committee Financial Expert.
The Board of Trustees of the registrant has determined that David Downes, the Boards Audit Committee Chairman, is an audit committee financial expert and that Mr. Downes is independent for purposes of this Item 3.
Item 4. Principal Accountant Fees and Services.
(a) | Audit Fees |
The principal accountant for the audit of the registrants annual financial statements billed $22,600 in fiscal 2014 and $22,100 in fiscal 2013.
(b) | Audit-Related Fees |
The principal accountant for the audit of the registrants annual financial statements billed no such fees in fiscal 2014 and no such fees in fiscal 2013.
The principal accountant for the audit of the registrants annual financial statements billed $1,042,959 in fiscal 2014 and $459,080 in fiscal 2013 to the registrants investment adviser or any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant.
Such services include: GIPS attestation procedures, system conversion testing, and entity reorganization
(c) | Tax Fees |
The principal accountant for the audit of the registrants annual financial statements billed no such fees in fiscal 2014 and no such fees in fiscal 2013.
The principal accountant for the audit of the registrants annual financial statements billed $467,462 in fiscal 2014 and $581,620 in fiscal 2013 to the registrants investment adviser or any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant.
Such services include: tax compliance, tax planning and tax advice. Tax compliance generally involves preparation of original and amended tax returns, claims for a refund and tax payment-planning services. Tax planning and tax advice includes assistance with tax audits and appeals, tax advice related to mergers and acquisitions and requests for rulings or technical advice from taxing authorities.
(d) | All Other Fees |
The principal accountant for the audit of the registrants annual financial statements billed no such fees in fiscal 2014 and no such fees in fiscal 2013.
The principal accountant for the audit of the registrants annual financial statements billed no such fees in fiscal 2014 and no such fees in fiscal 2013 to the registrants investment adviser or any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant.
Such fees would include the cost to the principal accountant of attending audit committee meetings and consultations regarding the registrants retirement plan with respect to its Trustees.
(e) | (1) During its regularly scheduled periodic meetings, the registrants audit committee will pre-approve all audit, audit-related, tax and other services to be provided by the principal accountants of the registrant. |
The audit committee has delegated pre-approval authority to its Chairman for any subsequent new engagements that arise between regularly scheduled meeting dates provided that any fees such pre-approved are presented to the audit committee at its next regularly scheduled meeting.
Under applicable laws, pre-approval of non-audit services may be waived provided that: 1) the aggregate amount of all such services provided constitutes no more than five percent of the total amount of fees paid by the registrant to its principal accountant during the fiscal year in which services are provided 2) such services were not recognized by the registrant at the time of engagement as non-audit services and 3) such services are promptly brought to the attention of the audit committee of the registrant and approved prior to the completion of the audit.
(2) 0%
(f) | Not applicable as less than 50%. |
(g) | The principal accountant for the audit of the registrants annual financial statements billed $1,510,421 in fiscal 2014 and $1,040,700 in fiscal 2013 to the registrant and the registrants investment adviser or any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant related to non-audit fees. Those billings did not include any prohibited non-audit services as defined by the Securities Exchange Act of 1934. |
(h) | The registrants audit committee of the board of Trustees has considered whether the provision of non-audit services that were rendered to the registrants investment adviser, and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountants independence. No such services were rendered. |
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 10/31/2014, 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) Exhibit attached hereto. |
(2) Exhibits attached hereto.
(3) Not applicable.
(b) | Exhibit attached hereto. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Oppenheimer Series Fund
By: | /s/ Arthur P. Steinmetz | |
Arthur P. Steinmetz | ||
Principal Executive Officer | ||
Date: | 12/12/2014 |
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: | 12/12/2014 |
By: | /s/ Brian W. Wixted | |
Brian W. Wixted | ||
Principal Financial Officer | ||
Date: | 12/12/2014 |
CODE OF ETHICS FOR PRINCIPAL EXECUTIVE AND FINANCIAL OFFICERS OF
THE OPPENHEIMER FUNDS, OPPENHEIMERFUNDS, INC., OFI GLOBAL ASSET
MANAGEMENT, INC. AND OFI STEELPATH, INC.
This Code of Ethics for Principal Executive and Financial Officers (referred to in this document as the Code) has been adopted by each of the investment companies for which OppenheimerFunds, Inc. (OFI), OFI Global Asset Management, Inc. (OFI Global) , OFI SteelPath, Inc. (OFI SteelPath) or one of OFIs other subsidiaries (referred to collectively in this document as OFI) acts as investment adviser (individually, a Fund and collectively, the Funds), and by OFI to effectuate compliance with Section 406 under the Sarbanes-Oxley Act of 2002 and the rules adopted to implement Section 406.
This Code applies to OFIs and each Funds principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions (Covered Officers). A listing of positions currently within the ambit of Covered Officers is attached as Exhibit A.1
INTRODUCTION / DEFINITION / POLICY STATEMENT:
In general, the principles that govern honest and ethical conduct, including the avoidance of conflicts of interest between personal and professional relationships, reflect, at the minimum, the following: (1) the duty at all times in performing any responsibilities as a Fund financial officer, controller, accountant or principal executive officer to place the interests of the Funds ahead of personal interests; (2) the fundamental standard that Covered Officers should not take inappropriate advantage of their positions; (3) the duty to assure that a Funds financial statements and reports to its shareholders are prepared honestly and accurately in accordance with applicable rules, regulations and accounting standards; and (4) the duty to conduct the Funds business and affairs in an honest and ethical manner. Each Covered Officer should be sensitive to situations that may give rise to actual as well as apparent conflicts of interest.
It is acknowledged that, as a result of the contractual relationship between each Fund and OFI, of which the Covered Officers are also officers or employees, and subject to OFIs fiduciary duties to each Fund, the Covered Officers may, in the normal course of their duties, be involved in establishing policies and implementing decisions that will have different effects on OFI and the Funds. It is further acknowledged that the participation of the Covered Officers in such activities is inherent in the contractual relationship between each Fund and OFI and is consistent with the expectations of the Board of Trustees/Directors of the performance by the Covered Officers of their duties as officers of the Funds.
POLICY DETAILS:
1. | Prohibitions |
1 | The obligations imposed by this Code on Covered Officers are separate from and in addition to any obligations that may be imposed on such persons as Covered Persons under the Code of Ethics adopted by OFI and the Funds under Rule 17j-1 of the Investment Company Act of 1940, as amended and any other code of conduct applicable to Covered Officers in whatever capacity they serve. This Code does not incorporate by reference any provisions of the Rule 17j-1 Code of Ethics and accordingly, any violations or waivers granted under the Rule 17j-1 Code of Ethics will not be considered a violation or waiver under this Code. |
The specific provisions and reporting requirements of this Code are concerned primarily with promoting honest and ethical conduct and avoiding conflicts of interest in personal and professional relationships. No Covered Officer may use information concerning the business and affairs of a Fund, including the investment intentions of a Fund, or use his or her ability to influence such investment intentions, for personal gain to himself or herself, his or her family or friends or any other person or in a manner detrimental to the interests of a Fund or its shareholders.
No Covered Officer may use his or her personal influence or personal relationships to influence the preparation and issuance of financial reports of a Fund whereby the Covered Officer would benefit personally to the detriment of the Fund and its shareholders.
No Covered Officer shall intentionally for any reason take any action or fail to take any action in connection with his or her official acts on behalf of a Fund that causes the Fund to violate applicable laws, rules and regulations.
No Covered Officer shall, in connection with carrying out his or her official duties and responsibilities on behalf of a Fund:
(i) | employ any device, scheme or artifice to defraud a Fund or its shareholders; |
(ii) | intentionally cause a Fund to make any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements made, in light of the circumstances under which they are made, not misleading in its official documents, regulatory filings, financial statements or communications to the public; |
(iii) | engage in any act, practice, or course of business which operates or would operate as a fraud or deceit upon any Fund or its shareholders; |
(iv) | engage in any manipulative practice with respect to any Fund; |
(v) | use his or her personal influence or personal relationships to influence any business decision, investment decisions, or financial reporting by a Fund whereby the Covered Officer would benefit personally to the detriment of the Fund or its shareholders; |
(vi) | intentionally cause a Fund to fail to comply with applicable laws, rules and regulations, including failure to comply with the requirement of full, fair, accurate, understandable and timely disclosure in reports and documents that a Fund files with, or submits to, the SEC and in other public communications made by the Fund; |
(vii) | intentionally mislead or omit to provide material information to the Funds independent auditors or to the Board of Trustees/Directors or the officers of the Fund or its investment adviser in connection with financial reporting matters; |
(viii) | fail to notify the Code Administrator or the Chief Executive Officer of the Fund or its investment adviser promptly if he or she becomes aware of any existing or potential violations of this Code or applicable laws; |
(ix) | retaliate against others for, or otherwise discourage the reporting of, actual or apparent violations of this Code; or |
(x) | fail to acknowledge or certify compliance with this Code if requested to do so. |
2. | Reports of Conflicts of Interests |
If a Covered Officer becomes aware of a conflict of interest under this Code or, to the Covered Officers reasonable belief, the appearance of one, he or she must immediately report the matter to the Codes Administrator. If the Code Administrator is involved or believed to be involved in the conflict of interest or appearance of conflict of interest, the Covered Officer shall report the matter directly to the Chief Executive Officer of OFI Global.
Upon receipt of a report of a conflict, the Code Administrator will take prompt steps to determine whether a conflict of interest exists. If the Code Administrator determines that an actual conflict of interest exists, the Code Administrator will take steps to resolve the conflict. If the Code Administrator determines that the appearance of a conflict exists, the Code Administrator will take appropriate steps to remedy such appearance. If the Code Administrator determines that no conflict or appearance of a conflict exists, the Code Administrator shall meet with the Covered Officer to advise him or her of such finding and of his or her reason for taking no action. In lieu of determining whether a conflict or appearance of conflict exists, the Code Administrator may in his or her discretion refer the matter to the Funds Board of Trustees/Directors.
3. | Waivers |
Any Covered Officer requesting a waiver of any of the provisions of this Code must submit a written request for such waiver to the Code Administrator, setting forth the basis of such request and all necessary facts upon which such request can be evaluated. The Code Administrator shall review such request and make a written determination thereon, which shall be binding. The Code Administrator may in reviewing such request, consult at his discretion with legal counsel to OFI Global or to the Fund.
In determining whether to waive any of the provisions of this Code, the Code Administrator shall consider whether the proposed waiver:
(i) | is prohibited by this Code; |
(ii) | is consistent with honest and ethical conduct; and |
(iii) | will result in a conflict of interest between the Covered Officers personal and professional obligations to a Fund. |
In lieu of determining whether to grant a waiver, the Code Administrator in his or her discretion may refer the matter to the appropriate Funds Board of Trustees/Directors.
4. | Reporting Requirements |
(a) Each Covered Officer shall, upon becoming subject to this Code, be provided with a copy of this Code and shall affirm in writing that he or she has received, read, understands and shall adhere to this Code.
(b) At least annually, all Covered Officers shall be provided with a copy of this Code and shall certify that they have read and understand this Code and recognize that they are subject thereto.
(c) At least annually, all Covered Officers shall certify that they have complied with the requirements of this Code and that they have disclosed or reported any violations of this Code to the Code Administrator or the Chief Executive Officer of the Fund or its investment adviser.
(d) The Code Administrator shall submit a quarterly report to the Board of Trustees/Directors of each Fund containing (i) a description of any report of a conflict of interest or apparent conflict and the disposition thereof; (ii) a description of any request for a waiver from this Code and the disposition thereof; (iii) any violation of the Code that has been reported or found and the sanction imposed; and (iv) any other significant information arising under the Code including any proposed amendments.
(e) Each Covered Officer shall notify the Code Administrator promptly if he or she knows of or has a reasonable belief that any violation of this Code has occurred or is likely to occur. Failure to do so is itself a violation of this Code.
(f) Any changes to or waivers of this Code, including implicit waivers as defined in applicable SEC rules, will, to the extent required, be disclosed by the Code Administrator or his or her designee as provided by applicable SEC rules.2
5. | Annual Review |
At least annually, the Board of Trustees/Directors of each Fund shall review the Code and consider whether any amendments are necessary or desirable.
6. | Sanctions |
Any violation of this Code of Ethics shall be subject to the imposition of such sanctions by OFI as may be deemed appropriate under the circumstances to achieve the purposes of this Code and may include, without limitation, a letter of censure, suspension from employment or termination of employment, in the sole discretion of OFI.
7. | Administration and Construction |
(a) | The administration of this Code of Ethics shall be the responsibility of OFI Globals General Counsel or his or her designee as the Code Administrator of this Code, acting under the terms of this Code and the oversight of the Trustees/Directors of the Funds. |
(b) | The duties of such Code Administrator will include: |
2 | An implicit waiver is the failure to take action within a reasonable period of time regarding a material departure from a provision of this Code that has been made known to the General Counsel, the Code Administrator, and an executive officer of the Fund or OFI. |
(i) | Continuous maintenance of a current list of the names of all Covered Officers; |
(ii) | Furnishing all Covered Officers a copy of this Code and initially and periodically informing them of their duties and obligations thereunder; |
(iii) | Maintaining or supervising the maintenance of all records required by this Code, including records of waivers granted hereunder; |
(iv) | Issuing interpretations of this Code which appear to the Code Administrator to be consistent with the objectives of this Code and any applicable laws or regulations; and |
(v) | Conducting reviews as shall reasonably be required to detect and report any violations of this Code, with his or her recommendations, to the Chief Executive Officer of OFI Global and to the Trustees/Directors of the affected Fund(s) or any committee appointed by them to deal with such information; and Periodically conducting educational training programs as needed to explain and reinforce the terms of this Code. |
(c) | In carrying out the duties and responsibilities described under this Code, the Code Administrator may consult with legal counsel, who may include legal counsel to the applicable Funds, and such other persons as the Administrator shall deem necessary or desirable. The Code Administrator shall be protected from any liability hereunder or under any applicable law, rule or regulation, for decisions made in good faith based upon his or her reasonable judgment. |
8. | Required Records |
The Administrator shall maintain and cause to be maintained in an easily accessible place, the following records for the period required by applicable SEC rules (currently six years following the end of the fiscal year of OFI in which the applicable event or report occurred):
(a) | A copy of any Code which has been in effect during the period; |
(b) | A record of any violation of any such Code and of any action taken as a result of such violation, during the period; |
(c) | A copy of each annual report pursuant to the Code made by a Covered Officer during the period; |
(d) | A copy of each report made by the Code Administrator pursuant to this Code during the period; |
(e) | A list of all Covered Officers who are or have been required to make reports pursuant to this Code during the period, plus those person(s) who are or were responsible for reviewing these reports; |
(f) | A record of any request to waive any requirement of this Code, the decision thereon and the reasons supporting the decision; and |
(g) | A record of any report of any conflict of interest or appearance of a conflict of interest received by the Code Administrator or discovered by the Code Administrator during the period, the decision thereon and the reasons supporting the decision. |
9. | Amendments and Modifications |
Other than non-substantive or administrative changes, this Code may not be amended or modified unless approved or ratified by the Board of Trustees/Directors of each Fund.
10. | Confidentiality. |
This Code is identified for the internal use of the Funds and OFI. Reports and records prepared or maintained under this Code are considered confidential and shall be maintained and protected accordingly to the extent permitted by applicable laws, rules and regulations. Except as otherwise required by law or this Code, such matters shall not be disclosed to anyone other than the Trustees/Directors of the affected Fund(s) and their counsel, the independent auditors of the affected Funds and/or OFI, and to OFI, except as such disclosure may be required pursuant to applicable judicial or regulatory process.
Approved by the Denver Board of the Oppenheimer Funds on August 24, 2014
Approved by the New York of the Oppenheimer Funds on September 15, 2014
Approved by OFI Legal and Compliance on May 27, 2014
Exhibit A
Positions Covered by this Code of Ethics for Principal Executive and Financial Officers*
Each Oppenheimer fund
President (Principal Executive Officer)
Treasurer (Principal Financial Officer)
OppenheimerFunds, Inc., OFI Global Asset Management, Inc., and OFI SteelPath, Inc.
President (Principal Executive Officer)
Chief Executive Officer (Principal Executive Officer)
Chief Financial Officer Principal Financial Officer)
Treasurer (Principal Financial Officer)
* | There are no other positions with the Funds, OFI, OFI Global or OFI SteelPath, Inc. held by persons who perform similar functions to those listed above. |
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 Series 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: 12/12/2014
/s/ Arthur P. Steinmetz |
Arthur P. Steinmetz |
Principal Executive Officer |
Exhibit 99.CERT
Section 302 Certifications
CERTIFICATIONS
I, Brian W. Wixted, certify that:
1. | I have reviewed this report on Form N-CSR of Oppenheimer Series 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: 12/12/2014
/s/ Brian W. Wixted |
Brian W. Wixted |
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 W. Wixted, Principal Financial Officer, of Oppenheimer Series 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 10/31/2014 (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 Series Fund | Oppenheimer Series Fund | |||
/s/ Arthur P. Steinmetz |
/s/ Brian W. Wixted | |||
Arthur P. Steinmetz | Brian W. Wixted | |||
Date: 12/12/2014 | Date: 12/12/2014 |
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