PROGRESSIVE
CAPITAL
ACCUMULATION
TRUST
(formerly Anchor Capital Accumulation Trust)
ANNUAL REPORT
DECEMBER 31, 1999
<PAGE>
PROGRESSIVE CAPITAL ACCUMULATION TRUST
(formerly Anchor 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
- -------------------------------------------------------------------------------
1 Year 5 Year 10 Year
26.10% 18.42% 11.81%
===============================================================================
2.
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PROGRESSIVE CAPITAL ACCUMULATION TRUST
(formerly Anchor Capital Accumulation Trust)
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1999
Assets:
Investments at quoted market value (cost $3,670,398;
see Schedule of Investments, Notes 1, 2, & 5)................. $ 6,173,282
Cash ......................................................... 505,583
Foreign time deposits (cost $434,048; maturing 01/05/00 at 3%) 434,998
Dividends and interest receivable.............................. 3,773
Other assets................................................... 1,769
------------
Total assets.............................................. 7,119,405
------------
Liabilities:
Accrued expenses and other liabilities (Note 3 )............... 37,069
------------
Total liabilities......................................... 37,069
------------
Net Assets:
Capital stock (unlimited shares authorized at $1.00 par value,
amount paid in on 268,628 shares outstanding) (Note 1)........ 3,949,361
Accumulated undistributed net investment income (Note 1)....... 1,028,479
Accumulated realized loss from security transactions,
net (Note 1).................................................. (399,338)
Net unrealized appreciation in value of investments (Note 2)... 2,503,834
------------
Net assets (equivalent to $26.36 per share, based on
268,628 capital shares outstanding)...................... $ 7,082,336
============
The accompanying notes are an integral part of these financial statements.
3.
<PAGE>
PROGRESSIVE CAPITAL ACCUMULATION TRUST
(formerly Anchor Capital Accumulation Trust)
STATEMENT OF OPERATIONS
DECEMBER 31, 1999
Income:
Dividends..................................................... $ 21,809
Interest...................................................... 50,703
-----------
Total income.............................................. 72,512
-----------
Expenses:
Management fees, net (Note 3)................................. 36,196
Pricing and bookkeeping fees (Note 4)......................... 18,500
Legal fees.................................................... 8,260
Audit and accounting fees..................................... 7,700
Transfer fees (Note 4)........................................ 12,000
Trustees' fees and expenses................................... 1,000
Custodian fees................................................ 1,800
Other expenses................................................ 4,700
-----------
Total expenses............................................ 90,156
-----------
Net investment loss............................................ (17,644)
-----------
Realized and unrealized gain on investments:
Realized gain on investments-net............................. 135,760
Increase in net unrealized appreciation in investments....... 1,274,310
-----------
Net gain on investments................................... 1,410,070
-----------
Net increase in net assets resulting from operations........... $ 1,392,426
===========
The accompanying notes are an integral part of these financial statements.
4.
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PROGRESSIVE CAPITAL ACCUMULATION TRUST
(formerly Anchor Capital Accumulation Trust)
STATEMENT OF CHANGES IN NET ASSETS
Year Ended Year Ended
December 31, December 31,
1999 1998
---------------------------
From operations:
Net investment loss ............................ $ (17,644) $ (1,020)
Realized gain on investments, net............... 135,760 5,239,438
Increase (decrease) in net unrealized
appreciation in investments.................... 1,274,310 (3,974,056)
------------ ------------
Net increase in net assets resulting
from operations............................ 1,392,426 1,264,362
------------ ------------
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 and $11.61 per share
in 1998)...................................... (61,824) (5,249,366)
------------ ------------
Total distributions to shareholders......... (137,490) (5,249,366)
------------ ------------
From capital share transactions:
Number of Shares
1999 1998
---------- -----------
Proceeds from sale of
shares.................. 75,023 52,326 1,684,250 944,736
Shares issued to share-
holders in distributions
reinvested............... 5,003 277,950 130,628 5,236,575
Cost of shares redeemed... (12,145) (590,780) (267,842) (11,225,631)
-------- --------- ----------- ------------
Increase (decrease) in net
assets resulting from
capital share
transactions...... 67,881 (260,504) 1,547,036 (5,044,320)
========== =========== ------------ ------------
Net increase (decrease) in net assets............ 2,801,972 (9,029,324)
Net assets:
Beginning of period............................ 4,280,364 13,309,688
------------- -----------
End of period (including undistributed
net investment income of $1,028,479 and
$1,028,906, respectively).................. $ 7,082,336 $ 4,280,364
============ ============
The accompanying notes are an integral part of these financial statements.
5.
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PROGRESSIVE CAPITAL ACCUMULATION TRUST
(formerly Anchor Capital Accumulation Trust)
SELECTED PER SHARE DATA AND RATIOS (for a share
outstanding throughout each period)
Year Ended December 31,
1999 1998 1997 1996 1995
-----------------------------------------------------
Investment income........ $ 4.15 $ (378.95) $ 0.59 $ 1.33 $ (1.17)
Expenses, net............ 5.16 (381.86) 0.47 0.92 (0.64)
-----------------------------------------------------
Net investment (loss) (1.01) 2.91 0.12 0.41 (0.53)
income...................
Net realized and
unrealized
gain (loss) on
investments.............. 6.57 1.16 3.30 3.06 4.32
Distributions to
shareholders:
From net investment
income................. (0.29) -- (0.07) (0.13) (0.19)
From net realized gain
on investments......... (0.23) (11.61 ) (0.79) (0.09) (0.62)
---------------------------------------------------
Net increase (decrease)
in net asset value...... 5.04 (7.54) 2.56 3.25 2.98
Net asset value:
Beginning of period..... 21.32 28.86 26.30 23.05 20.07
-----------------------------------------------------
End of period........... $ 26.36 $ 21.32 $28.86 $26.30 $23.05
=====================================================
Total Return............. 26.10% 19.40% 13.04% 15.05% 18.91%
Ratio of expenses to
average net assets...... 1.66% 1.29% 1.15% 1.10% 1.11%
Ratio of net investment
income to average
net assets.............. (0.32)% (0.01)% 0.28% 0.49% 0.92%
Portfolio turnover....... 0.28 0.49 0.04 0.21 0.40
Average commission rate
paid..................... 0.0510 0.0654 0.0800 0.0650 0.040
Number of shares out-
standing at end of period 268,628 200,747 461,251 469,703 539,341
The accompanying notes are an integral part of these financial statements.
6.
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PROGRESSIVE CAPITAL ACCUMULATION TRUST
(formerly Anchor Capital Accumulation Trust)
SCHEDULE OF INVESTMENT
DECEMBER 31, 1999
Value
Quantity (Note 1)
-------- --------
COMMON STOCKS - 87.16%
Advertising Industry - 3.96%
5,000 Interpublic Group Of Companies Incorporated..............$ 280,937
-----------
Air Transport Industry - 1.89%
3,300 FDX Corporation.......................................... 134,063
-----------
Bank Industry - 3.00%
5,300 Bank of New York Company Incorporated.................... 212,662
-----------
Computer & Peripherals Industry - 5.40%
2,300 Cisco Systems Incorporated............................... 244,805
1,200 Hewlett Packard Company.................................. 137,625
-----------
382,430
Computer Software & Services Industry - 9.88%
4,600 Automatic Data Processing Incorporated................... 248,974
1,800 Computer Sciences........................................ 169,650
2,500 Oracle Corporation....................................... 280,781
-----------
699,405
Diversified Company Industry - 3.39%
89 Berkshire Hathaway Class B............................... 152,902
2,200 Tyco International Limited............................... 87,038
-----------
239,940
Drug Industry - 5.98%
6,800 Amgen Incorporated....................................... 423,724
-----------
Electrical Equipment Industry -- 3.93%
1,800 General Electric Company................................. 278,663
-----------
Financial Services Industry--0.10%
520 Gartner Group Incorporated, Class B...................... 6,858
-----------
Food Processing Industry - 2.42%
5,248 Tootsie Roll Industries Incorporated..................... 171,872
-----------
The accompanying notes are an integral part of these financial statements.
7.
<PAGE>
PROGRESSIVE CAPITAL ACCUMULATION TRUST
(formerly Anchor Capital Accumulation Trust)
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1999
(Continued)
Value
Quantity (Note 1)
-------- --------
Food Wholesalers Industry -- 2.89%
5,200 Sysco Corporation........................................ 204,425
-----------
Foreign Telecommunications -- 2.80%
2,000 Nortel Networks Corporation.............................. 198,625
-----------
Gold/Silver Mining Industry -- 2.12%
9,620 Franco Nevada Mining Corporation......................... 149,976
-----------
Insurance (Diversified) Industry -- 3.44%
2,250 American International Group............................. 243,422
-----------
Insurance (Life) Industry -- 2.40%
3,600 Aflac Incorporated....................................... 169,650
-----------
Manufacturing (Communications) Industry - 3.47%
3,600 JDS Uniphase............................................. 245,625
-----------
Medical Services Industry - 1.53%
4,000 IMS Health............................................... 108,250
-----------
Medical Supplies Industry - 5.00%
4,000 Abbott Laboratories...................................... 144,750
3,000 Stryker Corporation...................................... 209,438
-----------
354,188
-----------
Newspaper Industry - 3.18%
4,600 New York Times Cl A...................................... 225,113
-----------
Office Equipment & Supplies Industry - 1.95%
6,550 Staples Incorporated..................................... 137,959
-----------
Retail Building Supply Industry -- 3.98%
4,050 Home Depot Incorporated.................................. 281,981
-----------
The accompanying notes are an integral part of these financial statements.
8.
<PAGE>
PROGRESSIVE CAPITAL ACCUMULATION TRUST
(formerly Anchor Capital Accumulation Trust)
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1999
(Continued)
Value
Quantity (Note 1)
-------- --------
Retail Store Industry - 1.60%
5,000 Dollar General........................................... 113,125
-----------
Semiconductor Industry - 6.87%
2,000 Intel Corporation........................................ 166,500
2,300 Linear Technologies Corporation.......................... 164,738
1,600 Texas Instruments........................................ 155,500
-----------
486,738
Telecommunication Equipment Industry - 3.72%
1,800 Lucent Technologies Incorporated......................... 135,338
2,000 Tellabs Incorporated..................................... 128,375
-----------
263,713
Telecomunication Services Industry - 2.26%
3,000 MCI Worldcom Incorporated................................ 159,938
-----------
Total common stocks (cost $3,670,398).................... 6,173,282
-----------
CASH, FOREIGN TIME DEPOSITS & OTHER ASSETS,
LESS LIABILITIES - 12.84%......................................... 909,054
-----------
Total Net Assets........................................ $7,082,336
===========
The accompanying notes are an integral part of these financial statements.
9.
<PAGE>
PROGRESSIVE CAPITAL ACCUMULATION TRUST
(formerly Anchor Capital Accumulation Trust)
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1999
1. Significant accounting policies:
On December 14, 1998, the Board of Trustees voted to change the name of the
Trust from Anchor Capital Accumulation Trust to Progressive Capital
Accumulation Trust. Subsequent to their vote the name change became effective
January 21, 1999.
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.
10.
<PAGE>
PROGRESSIVE CAPITAL ACCUMULATION TRUST
(formerly Anchor Capital Accumulation Trust)
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1999
(Continued)
2. Tax basis of investments:
At December 31, 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 $2,600,017. Aggregate gross
unrealized depreciation in investments in which there was an excess of tax
cost over market value was $96,183. Net unrealized appreciation in
investments at December 31, 1999 was $2,503,834.
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 effective November 30, 1998. 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 December 31, 1999, investment advisory fees of $3,959 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 $3,133 in brokerage commissions during the year
ended December 31, 1999. Fees earned by Progressive Investment Management
Corporation for expenses related to daily pricing of the Trust shares and for
bookkeeping services for the year December 31, 1999 were $18,500.
5. Purchases and sales:
Aggregate cost of purchases and the proceeds from sales and maturities on
investments for the year ended December 31, 1999 were:
Cost of securities acquired:
U.S. Government and investments backed by such
securities...................................... $ 3,900,575
Other investments................................ 8,396,743
---------------
$ 12,297,318
===============
Proceeds from sales and maturities:
U.S. Government and investments backed by such
securities...................................... $ 4,741,764
Other investments................................ 6,551,857
---------------
$ 11,293,621
===============
11.
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PROGRESSIVE CAPITAL ACCUMULATION TRUST
(formerly Anchor Capital Accumulation Trust)
Independent Auditors' Report
To the Shareholders and Trustees of Progressive Capital Accumulation Trust
(formerly Anchor Capital Accumulation Trust):
We have audited the accompanying statement of assets and liabilities of
Progressive Capital Accumulation Trust (formerly Anchor Capital Accumulation
Trust), a Massachusetts business trust, including the schedule of investments,
as of December 31, 1999, the related statement of operations for the year then
ended, the statements of changes in net assets for each of the two years in the
period then ended, and the selected per share data and ratios for each of the
five years in the period then ended. These financial statements and per share
data and ratios are the responsibility of the Trust's management. Our
responsibility is to express an opinion on these financial statements and per
share data and ratios based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and per share data
and ratios 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
December 31, 1999 by correspondence with the custodian. 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 selected per share data and ratios
referred to above present fairly, in all material respects, the financial
position of Progressive Capital Accumulation Trust (formerly Anchor Capital
Accumulation Trust) as of December 31, 1999, the results of its operations for
the year then ended, the changes in its net assets for each of the two years in
the period then ended, and the selected per share data and ratios for each of
the five years in the period then ended, in conformity with generally accepted
accounting principles.
LIVINGSTON & HAYNES, P.C.
Wellesley, Massachusetts,
January 7, 2000
12.
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PROGRESSIVE CAPITAL ACCUMULATION TRUST
(formerly Anchor 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
13.
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PROGRESSIVE CAPITAL ACCUMULATION TRUST
(formerly Anchor Capital Accumulation Trust)
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.
14.
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