PROGRESSIVE CAPITAL ACCUMULATION TRUST
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SEMI-ANNUAL REPORT
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JUNE 30, 1999
(UNAUDITED)
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PROGRESSIVE CAPITAL ACCUMULATION TRUST
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Comparison of the Change in Value of a $10,000 Investment in the Progressive
Capital Accumulation Trust and the Standard & Poor's 500 Index
[GRAPHIC OMITTED]
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Progressive Capital Accumulation Trust
Average Annual Total Return
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Six Months* 1 Year 5 Year 10 Year
4.88% 14.15% 15.23% 10.53%
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*Not Annualized for the period from December 31, 1998 to June 30, 1999.
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PROGRESSIVE CAPITAL ACCUMULATION TRUST
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STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1999
(Unaudited)
Assets:
Investments at quoted market value (cost $4,290,118;
see Schedule of Investments, Notes 1, 2, & 5)................. $ 5,736,067
Cash ......................................................... 63,179
Dividends and interest receivable.............................. 9,675
Other assets................................................... 1,769
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Total assets.............................................. 5,810,690
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Liabilities:
Accrued expenses and other liabilities (Note 3 )............... 27,865
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Total liabilities......................................... 27,865
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Net Assets:
Capital stock (unlimited shares authorized at $1.00 par value,
amount paid in on 258,570 shares outstanding) (Note 1)........ 3,688,806
Accumulated undistributed net investment income (Note 1)....... 1,024,702
Accumulated realized loss from security transactions, net (Note 1) (376,632)
Net unrealized appreciation in value of investments (Note 2)... 1,445,949
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Net assets (equivalent to $22.36 per share, based on
258,570 capital shares outstanding)...................... $ 5,782,825
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PROGRESSIVE CAPITAL ACCUMULATION TRUST
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STATEMENT OF OPERATIONS
JUNE 30, 1999
(Unaudited)
Income:
Dividends..................................................... $ 9,638
Interest...................................................... 28,268
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Total income.............................................. 37,906
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Expenses:
Management fees, net (Note 3)................................. 17,827
Pricing and bookkeeping fees (Note 4)......................... 9,291
Legal fees.................................................... 3,480
Audit and accounting fees..................................... 3,733
Transfer fees (Note 4)........................................ 5,967
Trustees' fees and expenses................................... 248
Custodian fees................................................ 497
Other expenses................................................ 1,067
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Total expenses............................................ 42,110
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Net investment loss............................................ (4,204)
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Realized and unrealized gain on investments:
Realized gain on investments-net............................. 3,759
Increase in net unrealized appreciation in investments....... 216,425
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Net gain on investments................................... 220,184
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Net increase in net assets resulting from operations........... $ 215,980
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PROGRESSIVE CAPITAL ACCUMULATION TRUST
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STATEMENTS OF CHANGES IN NET ASSETS
Six Months Ended
June 30, 1999 Year Ended
(Unaudited) December 31,
1998
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From operations:
Net investment loss income...................... $ (4,204) $ (1,020)
Realized gain on investments, net............... 3,759 5,239,438
Increase (decrease) in net unrealized
appreciation in investments.................... 216,425 (3,974,056)
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Net increase in net assets resulting
from operations............................ 215,980 1,264,362
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Distributions to shareholders:
From net investment income..................... -- --
From net realized gain on investments
($11.61 per share in 1998)................... -- (5,249,366)
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Total distributions to shareholders......... -- (5,249,366)
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From capital share transactions:
Number of Shares
1999 1998
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Proceeds from sale of
shares.................. 69,023 52,326 1,532,930 944,736
Shares issued to share-
holders in distributions
reinvested.............. -- 277,950 -- 5,236,575
Cost of shares redeemed.. (11,200) (590,780) (246,449) (11,225,631)
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Increase (decrease) in net
assets resulting from
capital
share transactions...... 57,823 (260,504) 1,286,481 (5,044,320)
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Net increase (decrease) in net assets............ 1,502,461 (9,029,324)
Net assets:
Beginning of period............................ 4,280,364 13,309,688
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End of period (including undistributed
net investment income of $1,024,702 and
$1,028,906 , respectively)................. $ 5,782,825 $ 4,280,364
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PROGRESSIVE CAPITAL ACCUMULATION TRUST
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SELECTED PER SHARE DATA AND RATIOS
(for a share outstanding throughout each period)
Six Months
Ended
June 30, Year Ended December 31,
1999
(Unaudited) 1998 1997 1996 1995
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Investment income........ $ 10.48 $ (378.95) $ 0.59 $ 1.33 $ (1.17)
Expenses, net............ 11.64 (381.86) 0.47 0.92 (0.64)
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Net investment income
(loss)................... (1.16) 2.91 0.12 0.41 (0.53)
Net realized and
unrealized
gain (loss) on
investments.............. 2.20 1.16 3.30 3.06 4.32
Distributions to
shareholders:
From net investment
income................ -- -- (0.07) (0.13) (0.19)
From net realized gain
on investments........ -- (11.61 ) (0.79) (0.09) (0.62)
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Net increase (decrease)
in net asset value...... 1.04 (7.54) 2.56 3.25 2.98
Net asset value:
Beginning of period..... 21.32 28.86 26.30 23.05 20.07
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End of period........... $ 22.36 $ 21.32 $28.86 $26.30 $23.05
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Total Return*............ 4.88% 19.40% 13.04% 15.05% 18.91%
Ratio of expenses to
average net assets...... 1.75% 1.29% 1.15% 1.10% 1.11%
Ratio of net investment
in- (0.17%) (0.01)% 0.28% 0.49% 0.92%
come to average net
assets...................
Portfolio turnover....... 0.05 0.49 0.04 0.21 0.40
Average commission rate
paid..................... 0.0879 0.0654 0.0800 0.0650 0.0400
Number of shares out-
standing at end of period.. 258,570 200,747 461,251 469,703 539,341
*Not Annualized for the six months ended June 30, 1999.
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PROGRESSIVE CAPITAL ACCUMULATION TRUST
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SCHEDULE OF INVESTMENTS
JUNE 30, 1999
(Unaudited)
Value
Quantity (Note 1)
COMMON STOCKS - 76.09%
Advertising Industry - 2.21%
1,500 Interpublic Group Of Companies Incorporated $ 127,875
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Bank Industry - 3.24%
5,300 Bank of New York Company Incorporated 187,487
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Computer & Peripherals Industry -- 6.00%
3,600 Cisco Systems Incorporated 226,011
2,200 EMC Corporation 120,725
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346,736
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Computer Software & Services Industry -- 5.54%
4,600 Automatic Data Processing Incorporated 197,800
1,800 Computer Sciences 122,625
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320,425
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Diversified Company Industry -- 4.54%
89 Berkshire Hathaway Class B 201,407
3,400 Service Corporation International 61,200
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262,607
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Drug Industry -- 3.54%
3,400 Amgen Incorporated 204,850
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Electrical Equipment Industry -- 3.35%
1,800 General Electric Company 193,725
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Food Processing Industry -- 3.51%
5,248 Tootsie Roll Industries Incorporated 202,704
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Food Wholesalers Industry -- 2.70%
5,200 Sysco Corporation 156,328
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Gold/Silver Mining Industry -- 2.58%
6,000 Euro Nevada Mining Corporation 71,280
5,000 Franco Nevada Mining Corporation 77,900
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149,180
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* Non income producing security
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PROGRESSIVE CAPITAL ACCUMULATION TRUST
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SCHEDULE OF INVESTMENTS
JUNE 30, 1999
(Unaudited)
(Continued)
Value
Quantity (Note 1)
Industrial Services Industry -- 2.41%
4,000 Equifax Incorporated 139,500
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Insurance (Diversified) Industry -- 3.71%
1,800 American International Group 214,650
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Insurance (Life) Industry -- 2.93%
3,600 Aflac Incorporated 169,427
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Medical Services Industry -- 2.16%
4,000 IMS Health 125,000
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Medical Supplies Industry -- 8.29%
4,000 Abbott Laboratories 176,252
5,000 Stryker Corporation 303,125
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479,377
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Newspaper Industry -- 2.97%
4,600 New York Times Cl A 171,925
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Office Equipment & Supplies Industry - 3.34%
6,550 Staples Incorporated 193,225
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Retail Building Supply Industry -- 3.52%
3,200 Home Depot Incorporated 203,401
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Retail Store Industry -- 2.52%
5,000 Dollar General 145,625
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Semiconductor Industry -- 7.03%
3,000 Intel Corporation 175,689
3,500 Linear Technologies Corporation 230,563
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406,252
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* Non income producing security
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PROGRESSIVE CAPITAL ACCUMULATION TRUST
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SCHEDULE OF INVESTMENTS
JUNE 30, 1999
(Unaudited)
(Continued)
Value
Quantity (Note 1)
Total common stocks (cost $2,954,350).................... 4,400,299
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U.S. TREASURY BILLS - 23.10%.
1,350,000 Treasury Bill, 4.465% yield, maturing 08/05/99 (at cost). 1,335,768
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Total investments (cost $4,290,118)...................... 5,736,067
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CASH & OTHER ASSETS, LESS LIABILITIES - 0.81%.................... 46,758
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Total Net Assets....................................... $ 5,782,825
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* Non income producing security
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PROGRESSIVE CAPITAL ACCUMULATION TRUST
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NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1999
(Unaudited)
1. Significant accounting policies:
Progressive Capital Accumulation Trust, a Massachusetts business trust (the
"Trust"), is registered under the Investment Company Act of 1940, as amended,
as a diversified, open-end investment management company. The following is a
summary of significant accounting policies followed by the Trust which are in
conformity with those generally accepted in the investment company industry.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
A.Investment securities--
Security transactions are recorded on the date
the investments are purchased or sold. Each day, at noon, securities traded
on national security exchanges are valued at the last sale price on the
primary exchange on which they are listed, or if there has been no sale by
noon, at the current bid price. Other securities for which market
quotations are readily available are valued at the last known sales price,
or, if unavailable, the known current bid price which most nearly
represents current market value. Options are valued in the same manner.
Temporary cash investments are stated at cost, which approximates market
value. Dividend income is recorded on the ex-dividend date and interest
income is recorded on the accrual basis. Gains and losses from sales of
investments are calculated using the "identified cost" method for both
financial reporting and federal income tax purposes.
B.Income Taxes-- The Trust has elected to comply with the requirements of
the Internal Revenue Code applicable to regulated investment companies and
to distribute each year all of its taxable income to its shareholders. No
provision for federal income taxes is necessary since the Trust intends to
qualify for and elect the special tax treatment afforded a "regulated
investment company" under subchapter M of the Internal Revenue Code. Income
and capital gains distributions are determined in accordance with federal
tax regulations and may differ from those determined in accordance with
generally accepted accounting principles. To the extent these differences
are permanent, such amounts are reclassified within the capital accounts
based on their federal tax basis treatment; temporary differences do not
require such reclassification.
C. Capital Stock-- The Trust records the sales and redemptions of its
capital stock on trade date.
2. Tax basis of investments:
At June 30, 1999, the total cost of investments for federal income tax
purposes was identical to the total cost on a financial reporting basis.
Aggregate gross unrealized appreciation in investments in which there was an
excess of market value over tax cost was $1,476,208. Aggregate gross
unrealized depreciation in investments in which there was an excess of tax
cost over market value was $30,259. Net unrealized appreciation in
investments at June 30, 1999 was $1,445,949.
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NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1999
(Unaudited)
(Continued)
3. Investment advisory service agreements:
Pursuant to a shareholders meeting held on November 30, 1998, the
shareholders of Progressive Capital Accumulation Trust voted to enter into an
investment advisory agreement with Progressive Investment Management
Corporation, replacing Anchor Investment Management Corporation as the
Investment Adviser to the Trust. The investment advisory contract with
Progressive Investment Management Corporation (the "investment adviser")
provides that the Trust will pay the adviser a fee for investment advice
based on 3/4 of 1% per annum of average daily net assets. At June 30, 1999,
investment advisory fees of $3,837 were due and were included in "Accrued
expenses and other liabilities" in the accompanying Statement of Assets and
Liabilities.
4. Certain transactions:
The Trust has entered into an agreement with Cardinal Investment Services,
Inc. for transfer agent and dividend disbursing agent services. Annual
fees for these services are $12,000.
Certain officers and trustees of the Trust are directors and/or officers of
the investment adviser and distributor. Meeschaert & Co., Inc., the Trust's
distributor, received $1,105 in brokerage commissions during the six months
ended June 30, 1999. Fees earned by Progressive Investment Management
Corporation for expenses related to daily pricing of the Trust shares and for
bookkeeping services for the six months ended June 30, 1999 were $9,291.
5. Purchases and sales:
Aggregate cost of purchases and the proceeds from sales and maturities on
investments for six months ended June 30, 1999 were:
Cost of securities acquired:
U.S. Government and investments backed by such
securities....................................... $ 2,169,215
Other investments................................ 1,018,683
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$ 3,187,898
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Proceeds from sales and maturities:
U.S. Government and investments backed by such
securities......................................... $ 1,674,637
Other investments................................ 191,891
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$ 1,866,528
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PROGRESSIVE CAPITAL ACCUMULATION TRUST
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OFFICERS AND TRUSTEES
ERNIE BUTLER Trustee
President, I.E. Butler Securities
SPENCER H. LE MENAGER Trustee
President, Equity Inc.
DAVID W.C. PUTNAM Chairman
President, F.L. Putnam and Trustee
Investment Management Company
J. STEPHEN PUTNAM Vice President and
President, Robert Thomas Securities Treasurer
DAVID Y. WILLIAMS President, Secretary
President and Director, Meeschaert & Co., Inc., and Trustee
President and Director, Anchor Investment
Management Corporation
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PROGRESSIVE CAPITAL ACCUMULATION TRUST
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INVESTMENT ADVISER AND ADMINISTRATOR
Progressive Investment Management Corporation
579 Pleasant St., Suite 4, Paxton, Massachusetts 01612
(508) 831-1171
TRANSFER AGENT
Cardinal Investment Services Inc.
579 Pleasant St., Suite 4, Paxton, Massachusetts 01612
(508) 831-1171
DISTRIBUTOR
Meeschaert & Co., Inc.
579 Pleasant St., Suite 4, Paxton, Massachusetts 01612
CUSTODIAN
Investors Bank & Trust Company
200 Clarendon Street, Boston, Massachusetts 02116
INDEPENDENT PUBLIC ACCOUNTANT
Livingston & Haynes, P.C.
40 Grove St., Wellesley, Massachusetts 02482
LEGAL COUNSEL
Thorp Reed & Armstrong
One Riverfront Center, Pittsburgh, Pennsylvania 15222
This report is not authorized for distribution to prospective investors in the
Trust unless preceded or accompanied by an effective prospectus which includes
information concerning the Trust's record or other pertinent information.
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