PROGRESSIVE
CAPITAL
ACCUMULATION
TRUST
------------------------------------------
SEMI-ANNUAL REPORT
------------------------------------------
JUNE 30, 2000
(Unaudited)
1
<PAGE>
Progressive Capital Accumulation Trust
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]
------------------------------------------------
Progressive Capital Accumulation Trust
Average Annual Total Return
================================================
Six Months* 1 Year 5 Year 10 Year
3.64% 26.10% 18.42% 11.81%
================================================
*Not Annualized for the period from December 31, 1999 to June 30, 2000.
2
<PAGE>
Progressive Capital Accumulation Trust
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2000
(Unaudited)
Assets:
Investments at quoted market value (cost $5,174,274;
see Schedule of Investments, Notes 1, 2, & 5)................. $ 7,239,185
Cash ......................................................... 221,955
Dividends and interest receivable.............................. 6,375
Other assets................................................... 1,769
------------
Total assets.............................................. 7,469,284
------------
Liabilities:
Accrued expenses and other liabilities (Note 3 )............... 26,615
------------
Total liabilities......................................... 26,615
------------
Net Assets:
Capital stock (unlimited shares authorized at $1.00 par value,
amount paid in on 272,372 shares outstanding) (Note 1)........ 4,051,048
Accumulated undistributed net investment income (Note 1)....... 912,201
Accumulated realized loss from security transactions,
net (Note 1).................................................. 414,509
Net unrealized appreciation in value of investments (Note 2)... 2,064,911
------------
Net assets (equivalent to $27.32 per share, based on
272,372 capital shares outstanding)...................... $ 7,442,669
============
The accompanying notes are an integral part of these financial statements.
3
<PAGE>
Progressive Capital Accumulation Trust
STATEMENT OF OPERATIONS
JUNE 30, 2000
(Unaudited)
Income:
Dividends..................................................... $ 15,245
Interest...................................................... 14,728
------------
Total income.............................................. 29,973
------------
Expenses:
Management fees, net (Note 3)................................. 26,262
Pricing and bookkeeping fees (Note 4)......................... 9,271
Transfer fees (Note 4)........................................ 6,015
Legal fees.................................................... 4,261
Audit and accounting fees..................................... 3,859
Custodian fees................................................ 902
Trustees' fees and expenses................................... 500
Other expenses................................................ 2,297
------------
Total expenses............................................ 53,367
------------
Net investment loss............................................ (23,394)
------------
Realized and unrealized gain on investments:
Realized gain on investments-net............................. 720,963
Increase in net unrealized appreciation in investments....... (438,923)
------------
Net gain on investments................................... 282,040
------------
Net increase in net assets resulting from operations........... $ 258,646
============
The accompanying notes are an integral part of these financial statements.
4
<PAGE>
Progressive Capital Accumulation Trust
STATEMENTS OF CHANGES IN NET ASSETS
Six Months
Ended Year Ended
June 30, 2000 December 31,
(Unaudited) 1999
--------------- -----------
From operations:
Net investment loss income...................... $ (23,394) $ (17,644)
Realized gain on investments, net............... 720,963 135,760
Increase (decrease) in net unrealized
appreciation in investments.................... (438,923) 1,274,310
-------------- ------------
Net increase in net assets resulting
from operations............................ 258,646 1,392,426
-------------- ------------
Distributions to shareholders:
From net investment income ($0.29 per share
in 1999)...................................... -- (75,666)
From net realized gain on investments
($0.23 per share in 1999).................... -- (61,824)
-------------- ------------
Total distributions to shareholders......... -- (137,490)
-------------- ------------
From capital share transactions:
Number of Shares
2000 1999
---------- -----------
Proceeds from sale of
shares.................. 6,587 75,023 178,409 1,684,250
Shares issued to share-
holders in distributions
reinvested.............. -- 5,003 -- 130,628
Cost of shares redeemed.. (2,843) (12,145) (76,722) (267,842)
---------- ----------- ----------- -----------
Increase (decrease) in net
assets resulting from
capital share
transactions............ 3,744 67,881 101,687 (1,547,036)
========== =========== ----------- -----------
Net increase (decrease) in net assets............ 360,333 2,801,972
Net assets:
Beginning of period............................ 7,082,336 4,280,364
------------ ----------
End of period (including undistributed
net investment income of $912,201 and
$1,028,479, respectively)................ $ 7,442,669 $ 7,082,336
============= ============
The accompanying notes are an integral part of these financial statements.
5
<PAGE>
Progressive Capital Accumulation Trust
SELECTED PER SHARE DATA AND RATIOS
(for a share outstanding throughout each period)
Six Months
Ended
June 30,
2000 Year Ended December 31,
(Unaudited) 1999 1998 1997 1996
-----------------------------------------------------
Investment income........ $ 0.61 $ 4.15 $ (378.95) $ 0.59 $ 1.33
Expenses, net............ 1.09 5.16 (381.86) 0.47 0.92
--------- -------- ----------- -------- ------
Net investment income
(loss)................... (0.48) (1.01) 2.91 0.12 0.41
Net realized and unrealized
gain (loss)on
investments.............. 1.44 6.57 1.16 3.30 3.06
Distributions to
shareholders:
From net investment
income................ -- (0.29) -- (0.07) (0.13)
From net realized gain
on investments........ -- (0.23) (11.61 ) (0.79) (0.09)
--------- -------- ----------- -------- ------
Net increase (decrease)
in net asset value...... 0.96 5.04 (7.54) 2.56 3.25
Net asset value:
Beginning of period..... 26.36 21.32 28.86 26.30 23.05
--------- -------- ----------- -------- ------
End of period........... $ 27.32 $ 26.36 $ 21.32 $28.86 $26.30
=====================================================
Total Return............. 3.64% 26.10% 19.40% 13.04% 15.05%
Ratio of expenses to
average net assets...... 1.49% 1.66% 1.29% 1.15% 1.10%
Ratio of net investment
income to average net
assets.................. (0.65)% (0.32)% (0.01)% 0.28% 0.49%
Portfolio turnover....... 0.87 0.28 0.49 0.04 0.21
Average commission rate
paid..................... 0.0579 0.0510 0.0654 0.0800 0.0650
Number of shares out-
standing at end of
period.................. 272,372 268,628 200,747 461,251 469,703
The accompanying notes are an integral part of these financial statements.
6
<PAGE>
Progressive Capital Accumulation Trust
SCHEDULE OF INVESTMENTS
JUNE 30, 2000
(Unaudited)
Value
Quantity (Note 1)
-------- --------
COMMON STOCKS - 85.07%
Advertising Industry - 2.86%
5,000 Interpublic Group Of Companies Incorporated $ 212,500
-----------
Air Transport Industry - 1.77%
3,300 FDX Corporation 131,588
----------
Bank Industry - 5.46%
5,300 Bank of New York Company Incorporated 251,419
2,500 Citigroup, Incorporated 154,687
-----------
406,106
-----------
Computer & Peripherals Industry - 3.78%
1,200 Hewlett Packard Company 147,375
1,500 Sun Microsystems, Incorporated 133,875
-----------
281,250
-----------
Computer Software & Services Industry - 8.23%
2,500 America Online, Incorporated 129,531
4,600 Automatic Data Processing, Incorporated 239,200
2,200 Computer Associates International 113,713
1,800 Computer Sciences 129,825
-----------
612,269
-----------
Diversified Company Industry - 3.44%
89 Berkshire Hathaway Class B 155,483
2,200 Tyco International Limited 100,650
-----------
256,133
-----------
Drug Industry - 3.37%
3,600 Amgen Incorporated 250,988
-----------
Electrical Equipment Industry - 3.62%
5,400 General Electric Company 269,663
-----------
Food Processing Industry - 2.81%
5,405 Tootsie Roll Industries Incorporated 209,444
-----------
The accompanying notes are an integral part of these financial statements.
7
<PAGE>
Progressive Capital Accumulation Trust
SCHEDULE OF INVESTMENTS
JUNE 30, 2000
(Unaudited)
(Continued)
Value
Quantity (Note 1)
-------- --------
Food Wholesalers Industry - 2.80%
5,200 Sysco Corporation 208,650
-----------
Foreign Telecommunications - 2.81%
3,000 Nortel Networks Corporation 209,438
-----------
Insurance (Diversified) Industry - 3.63%
2,250 American International Group 270,000
-----------
Insurance (Life) Industry - 2.26%
3,600 AFLAC Incorporated 168,075
-----------
Investment Company (Biotech) Industry - 3.35%
1,400 Biotech Holders, ADR 249,375
-----------
Management Sevices Industry - 2.41%
3,500 Convergys Corporation 179,594
-----------
Manufacturing (Communications) Industry - 1.61%
1,000 JDS Uniphase 120,062
-----------
Medical Supplies Industry - 5.81%
4,000 Abbott Laboratories 169,000
6,000 Stryker Corporation 263,625
-----------
432,625
-----------
Newspaper Industry - 2.48%
4,600 New York Times, Class A 184,575
-----------
Office Equipment & Supplies Industry - 1.33%
6,550 Staples Incorporated 98,659
-----------
Petroleum (Integrated) Industry - 2.91%
3,500 Royal Dutch Petroleum 216,781
-----------
The accompanying notes are an integral part of these financial statements.
8
<PAGE>
Progressive Capital Accumulation Trust
SCHEDULE OF INVESTMENTS
JUNE 30, 2000
(Unaudited)
(Continued)
Value
Quantity (Note 1)
-------- --------
Retail Building Supply Industry - 2.64%
4,050 Home Depot Incorporated 196,678
-----------
Retail Store Industry - 1.59%
6,250 Dollar General 117,969
-----------
Semiconductor Industry - 7.52%
4,000 Dallas Semiconductor 144,000
2,000 Intel Corporation 262,375
2,200 Texas Instruments 153,587
-----------
559,962
-----------
Telecommunication Equipment Industry - 4.75%
2,457 Agilent Technology 192,874
2,600 Cisco Systems, Incorporated 160,225
-----------
353,099
-----------
Telecomunication Services Industry - 1.83%
3,000 WorldCom Incorporated 136,125
-----------
Total common stocks (cost $4,268,193).................... 6,331,608
----------
CASH, FOREIGN TIME DEPOSITS & OTHER ASSETS,
LESS LIABILITIES - 14.93%......................................... 1,111,061
----------
Total Net Assets........................................ $7,442,669
==========
The accompanying notes are an integral part of these financial statements.
9
<PAGE>
Progressive Capital Accumulation Trust
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 2000
(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. During the current fiscal year permanent
differences, primarily due to short term gains and foreign currency losses
offset by net investment income, resulted in a net increase in
undistributed net investment income and an increase in accumulated realized
loss from security transactions. This reclassification had no effect on net
assets.
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, 2000, 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 $2,277,941. Aggregate gross
unrealized depreciation in investments in which there was an excess of tax
cost over market value was $213,030. Net unrealized appreciation in
investments at June 30, 2000 was $2,064,911.
10
<PAGE>
Progressive Capital Accumulation Trust
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 2000
(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, 2000,
investment advisory fees of $4,203 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 $2,484 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, 2000 were $9,271.
5. Purchases and sales:
Aggregate cost of purchases and the proceeds from sales and maturities on
investments for the six months ended June 30, 2000 were:
Cost of securities acquired:
U.S. Government and investments backed by such
securities...................................... $ 1,159,792
Other investments................................ 5,573,630
---------------
$ 6,733,422
===============
Proceeds from sales and maturities:
U.S. Government and investments backed by such
securities...................................... $ 395,026
Other investments................................ 5,989,531
---------------
$ 6,384,557
===============
11
<PAGE>
PROGRESSIVE CAPITAL ACCUMULATION TRUST
OFFICERS AND TRUSTEES
ERNIE BUTLER Trustee
President, I.E. Butler Securities
SPENCER H. LEMENAGER 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
Vice President and Director, Progressive
Investment Management, Inc.
12
<PAGE>
PROGRESSIVE CAPITAL ACCUMULATION TRUST
INVESTMENT ADVISER AND ADMINISTRATOR
Progressive Investment Management, Inc.
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.
13
<PAGE>
