<PAGE>
OCC CASH RESERVES
July 10, 1996
Dear Shareholder:
Our philosophy has always been to manage the OCC Cash Reserves portfolios
conservatively, recognizing that shareholders of money market funds view
liquidity and safety of principal as their most important objectives. That
philosophy remains unchanged. Rather than subjecting the portfolios to
additional risk to achieve a higher return, we maintain a rigorous approach to
analyzing and investing in quality credits. In the taxable sector, we invest in
securities of leading financial institutions and industrial companies in the
United States and abroad. In the tax-free sector, we choose to invest in those
municipalities that have stable economic trends.
During the first six months of the fiscal year, the market for fixed income
securities underwent a dramatic shift in investor sentiment--from the ebullience
of 1995 to an environment of uncertainty and wariness. The market was
characterized by a dichotomy between low inflation and the possibility of
increased economic growth. Against the backdrop of these events, including news
of a strengthening economy, short-term rates declined while rates on long-term
bonds increased. This has resulted in losses for those who have chosen to invest
directly or indirectly in long-term fixed-income securities. Investors in money
market funds such as OCC Cash Reserves, however, have not suffered any loss of
principal.
All eyes are now focused on whether the Federal Reserve will raise short-term
rates to forestall inflation if the economy accelerates. Even a single small
increase by the Fed would be viewed as a significant change of direction since
Fed increases often come in bunches. An initial boost tends to be followed by
others. However, the Fed may be inclined to hold rates steady for now on the
assessment that long rates, which have been pushed higher by market forces, will
have the effect of dampening economic activity and restraining the perceived
risk of higher inflation.
Detailed information on the performance and holdings of each of the Fund's five
portfolios in the most recent semi-annual period ended May 31, 1996 is presented
in the Investment Review and financial statements that follow.
We thank you for your trust and look forward to the opportunity to continue to
serve your money market fund needs.
Sincerely,
/s/ Joseph M. La Motta
Joseph M. La Motta
President
OCC Cash Reserves
One World Financial
Center
New York, NY 10281
Taxable
Primary Portfolio
Government Portfolio
Tax-Exempt
General Municipal Portfolio
California Municipal Portfolio
New York Municipal Portfolio
For more information or
assistance with your account
please call:
1-800-401-6672
<PAGE>
INVESTMENT REVIEW
Primary Portfolio
Objective
Seeks safety of principal, liquidity and maximum current income from investments
in a diversified portfolio of high-quality money market securities. The Primary
Portfolio invests in a range of high-quality securities: marketable obligations
of, or guaranteed by, the United States Government, its agencies or
instrumentalities; U.S. dollar-denominated certificates of deposit and bankers'
acceptances; interest-bearing time deposits; domestic or foreign commercial
paper of prime quality and participation interests in loans of equivalent
quality extended by banks to such companies; and repurchase agreements that are
collateralized in full each day by U.S. Government securities.
Semi-Annual Review
During the six-months ended May 31, 1996, the daily dividends of the Primary
Portfolio averaged 4.59% on an annual basis or 4.68% compounded monthly. At May
31 the Portfolio had a seven-day compounded yield of 4.54%, down from 5.01% at
the beginning of the year. The average maturity of the Portfolio during the six
months ranged from a low of 43 days to a high of 62 days and on May 31 was 58
days.
Government Portfolio
Objective
Seeks safety of principal, liquidity and maximum current income from investments
in a diversified portfolio of high-quality money market securities. The
Government Portfolio invests in: marketable obligations of, or guaranteed by,
the United States Government, its agencies or instrumentalities; and repurchase
agreements that are collateralized in full each day by such securities.
Semi-Annual Review
The Government Portfolio's daily dividend averaged 4.41% on an annual basis or
4.50% compounded monthly for the six months ended May 31, 1996. On May 31 the
seven-day compounded yield of the Portfolio was 4.35%, down from 4.88% at
November 30. The average maturity of the Portfolio during the six months ranged
from 17 days to 63 days. On May 31, it was 59 days.
General Municipal Portfolio
Objective
Seeks safety of principal, liquidity and maximum current income that is exempt
from Federal income taxes, from investments in a diversified portfolio of high-
grade municipal money market securities. Types of investments include municipal
notes, short-term municipal bonds, short-term discount notes and participation
interests in any of the foregoing.
Semi-Annual Review
Daily dividends of the General Municipal Portfolio averaged 2.59% on an annual
basis and 2.63% compounded monthly during the six months ended May 31. For an
investor not subject to the alternative minimum tax in the top Federal income
tax bracket of 39.6%, the effective compounded monthly yield was equivalent to a
taxable return of 4.35%. The seven-day compounded yield on May 31 was 2.62%
compared with the beginning of the fiscal year when it was 3.08%. Average
maturity for the Portfolio ranged from 27 days to 61 days and on May 31 was 39
days.
California Municipal Portfolio
Objective
Seeks safety of principal, liquidity and maximum current income that is exempt
from Federal and California personal income taxes, from investments in a
diversified portfolio of high-grade municipal money market securities. The
California municipal securities in which the Portfolio invests include municipal
notes, short-term municipal bonds, short-term discount notes and participation
interests in the foregoing.
Semi-Annual Review
For the six months ended May 31, 1996, the daily dividend averaged 2.45% on an
annual basis and 2.49% compounded monthly. For a person not subject to the
alternative minimum tax in the top Federal and California income tax brackets of
39.6% and 11%, respectively, the monthly compound return would be equivalent to
a taxable return of 4.63%. Between the end of the last fiscal year and May 31,
1996, the seven-day compounded yield fell from 3.14% to 2.59%. The average
maturity of the securities in the Portfolio ranged from 25 days to 48 days and
was 38 days on May 31.
2
<PAGE>
New York Municipal Portfolio
Objective
Seeks safety of principal, liquidity and maximum current income that is exempt
from Federal, New York State and New York City income taxes, from investments in
a portfolio of high-grade municipal money market securities. The New York
municipal securities in which the Portfolio invests include municipal notes,
short-term municipal bonds, short-term discount notes and participation
interests in any of the foregoing.
Semi-Annual Review
In the six months ended May 31, 1996, the daily dividends of the Portfolio
averaged 2.52% on an annual basis and 2.55% compounded monthly. This was
equivalent to an effective taxable yield of 4.77% for a person not subject to
the alternative minimum tax in the top Federal, New York State and New York City
tax brackets of 39.6%, 7.50% and 3.91%, respectively. The seven-day compounded
yield fell from 3.18% to 2.52% between the 1995 fiscal year-end and May 31,
1996. The average maturity of the Portfolio ranged between 24 days and 63 days.
On May 31, 1996 it was 41 days.
3
<PAGE>
SCHEDULES OF INVESTMENTS (unaudited)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------
Primary Portfolio
- -----------------------------------------------------------------------------------------------------
Principal
Amount
(000) Value
- -----------------------------------------------------------------------------------------------------
U.S. Government Securities--4.0%
<S> <C>
$ 55,290 Federal National Mortgage Association,
5.09%-5.36%,
7/30/96-5/1/97 $ 55,067,023
10,000 Student Loan Marketing Association #,
5.31%, 9/12/96 10,000,000
---------------------
Total U.S. Government Securities
(amortized cost--$65,067,023) $ 65,067,023
---------------------
Bank Notes-6.4%
$ 69,945 First Union National Bank of
North Carolina,
5.35%-5.41%,
8/19/96-10/21/96 $ 69,945,000
35,000 NationsBank NA,
5.32%-5.42%,
6/27/96-8/5/96 35,000,000
---------------------
Total Bank Notes
(amortized cost--$104,945,000) $ 104,945,000
---------------------
Certificates of Deposit--.6%
$ 10,000 Canadian Imperial Bank of Commerce,
5.16%, 6/4/96
(amortized cost--$10,000,000) $ 10,000,000
---------------------
Commercial Paper--90.0%
$ 42,000 Abbey National North America,
5.09%-5.35%,
6/17/96-11/29/96 $ 41,540,181
35,100 ABN-Amro North America Finance Inc.,
5.25%-5.29%,
7/8/96-11/12/96 34,552,298
10,000 A. H. Robbins Co. Inc.,
5.32%, 7/15/96 9,934,978
20,000 Alberta (Province of),
5.28%-5.29%,
6/4/96-6/17/96 19,972,125
56,750 American Express Credit Corp.,
4.95%-5.29%,
6/17/96-8/1/96 56,536,121
29,115 American Home Food Products Inc.,
5.11%-5.34%,
6/3/96-6/27/96 29,063,861
33,120 American Home Products Corp.,
5.30%, 7/8/96-8/1/96 32,859,534
10,000 Bank of Nova Scotia,
5.09%, 6/5/96 9,994,344
- -----------------------------------------------------------------------------------------------------
Principal
Amount
(000) Value
- -----------------------------------------------------------------------------------------------------
$ 50,000 Bayerische Vereinsbank AG,
5.31%-5.32%,
9/3/96-9/4/96 $ 49,303,272
35,800 Beneficial Corp.,
5.24%-5.35%,
7/29/96-1/10/97 35,666,613
29,000 Canadian Wheat Board,
4.97%-5.00%,
6/3/96-8/6/96 28,903,087
15,000 Cheltenham & Gloucester Building
Society,
5.27%, 7/8/96 14,918,754
15,000 CIT Group Holdings Inc.,
5.39%, 9/26/96 14,996,036
25,000 Commerzbank U.S. Finance Inc.,
5.27%-5.31%,
6/28/96-7/8/96 24,886,138
26,800 Corporate Asset Funding Co. Inc.,
5.25%-5.32%,
6/17/96-11/20/96 26,517,658
27,802 Daimler Benz North America Corp.,
5.27%-5.285%,
6/20/96-8/20/96 27,527,028
30,000 Deere (John) Capital Corp.,
5.23%-5.25%, 7/15/96 29,807,867
61,450 Eksportfinans A/S,
4.96%-5.30%,
6/18/96-8/14/96 61,152,830
25,000 Ford Credit Europe PLC,
5.18%-5.29%,
6/3/96-7/23/96 24,970,746
32,000 Ford Motor Credit Co.,
5.25%-5.28%,
7/1/96-7/23/96 31,820,980
30,610 General Electric Capital Corp.,
5.26%-5.84%,
6/7/96-8/19/96 30,470,208
31,355 General Electric Capital Services Inc.,
5.27%-5.30%,
7/29/96-10/15/96 30,979,789
62,000 General Motors Acceptance Corp.,
5.10%-5.34%,
7/2/96-7/22/96 61,662,059
10,000 Generale Bank Inc.,
5.28%, 7/24/96 9,922,267
59,515 Glaxo Holdings PLC,
5.20%-5.30%,
6/10/96-8/13/96 59,193,606
40,000 Goldman Sachs Group L.P.,
5.25%-5.28%,
6/12/96-7/29/96 39,824,517
</TABLE>
4
<PAGE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------
Principal
Amount
(000) Value
- -----------------------------------------------------------------------------------------------------
<S> <C>
Commercial Paper--90.9% (cont'd)
$ 10,000 Hewlett-Packard Co.,
5.20%, 7/16/96 $ 9,935,000
40,150 Household Finance Corp.
5.27%-5.31%,
7/22/96-8/8/96 39,790,755
15,000 IBM Credit Corp.,
5.29%, 7/31/96 14,867,750
3,500 Marsh & McLennan Cos. Inc.,
5.27%, 6/4/96 3,498,463
56,815 Merrill Lynch & Co. Inc.,
5.25%-5.40%,
6/3/96-7/29/96 56,597,485
22,972 Morgan (J.P.) & Co. Inc.,
5.26%-5.33%,
7/3/96-7/10/96 22,855,835
20,000 Morgan Stanley Group Inc.,
5.26%-5.30%,
6/24/96-8/23/96 19,844,200
25,000 NationsBank Corp.,
5.27%-5.34%,
7/11/96-8/26/96 24,785,106
65,000 Oesterreichische Kontrollbank AG,
5.06%-5.32%,
6/10/96-11/13/96 64,233,433
15,000 Queensland Treasury Corp.,
5.09%-5.27%, 6/11/96 14,978,542
30,000 Royal Bank of Canada,
5.20%-5.30%,
6/6/96-11/29/96 29,667,233
57,000 Societe Generale N.A. Inc.,
5.30%-5.39%,
7/8/96-8/12/96 57,000,000
20,000 Student Loan Corp.,
5.28%-5.29%, 7/26/96 19,838,544
57,607 Svenska Handelsbanken Inc.,
5.28%-5.32%,
6/28/96-9/11/96 56,936,150
61,950 Sweden (Kingdom of),
4.98%-5.32%,
6/3/96-12/18/96 60,484,538
35,900 Swedish Export Credit Corp.,
5.04%-5.30%,
6/25/96-10/8/96 35,500,224
50,000 Toronto-Dominion Holdings USA Inc.,
5.22%-5.30%,
7/22/96-11/12/96 49,342,958
10,000 Transamerica Finance Corp.,
5.28%, 7/22/96 9,925,200
- -----------------------------------------------------------------------------------------------------
Principal
Amount
(000) Value
- -----------------------------------------------------------------------------------------------------
$ 12,000 Unilever Capital Corp.,
5.22%, 6/24/96 $ 11,959,980
45,000 U.S. Borax & Chemical Corp.,
5.07%-5.28%,
6/10/96-8/19/96 44,726,025
---------------------
Total Commercial Paper
(amortized cost--$1,483,744,318) $ 1,483,744,318
---------------------
Total Investments
(amortized cost--$1,663,756,341+) 101.9% $1,663,756,341
Other Liabilities in Excess
of Other Assets (1.9) (30,292,640)
----- ---------------------
Total Net Assets
(applicable to 1,633,502,871 shares
outstanding at $1.00 per share) 100.0% $1,633,463,701
===== =====================
- ----------------------------------------------------------------------------------------------------
GOVERNMENT PORTFOLIO
- ----------------------------------------------------------------------------------------------------
U.S. Government Securities--100.5%
$ 5,000 Federal Farm Credit Bank,
4.97%, 6/20/96 $ 4,986,885
28,625 Federal Home Loan Bank,
4.88%-5.24%,
6/3/96-1/17/97 28,217,721
32,325 Federal Home Loan Mortgage
Corporation,
5.17%-5.25%,
6/6/96-8/19/96 32,072,411
23,015 Federal National Mortgage Association,
4.84%-5.27%,
6/11/96-4/11/97 22,857,642
10,000 Student Loan Marketing Association #,
5.27%-5.46%,
7/11/96-11/14/96 10,000,000
1,775 Tennessee Valley Authority,
5.18%, 7/26/96 1,760,953
---------------------
Total Investments
(amortized cost--$99,895,612+) 100.5% $ 99,895,612
Other Liabilities in Excess
of Other Assets (0.5) (496,473)
----- ---------------------
Total Net Assets
(applicable to 99,421,372 shares
outstanding at $1.00 per share) 100.0% $ 99,399,139
===== =====================
</TABLE>
5
<PAGE>
May 31, 1996
SCHEDULES OF INVESTMENTS (unaudited)(continued)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------
GENERAL MUNICIPAL PORTFOLIO
- -----------------------------------------------------------------------------------------------------
Principal
Amount
(000) Value
- -----------------------------------------------------------------------------------------------------
<S> <C>
Alabama--2.0%
$ 2,500 Phenix Cnty. IDB, EIR,
Ser. A,
3.45%, 6/7/96 $ 2,500,000
---------------------
Alaska--5.8%
3,600 Alaska St. HF Corp.,
Ser. A, VRDN*,
3.50%, 6/5/96 3,600,000
250 Anchorage Elec. Util. Rev.,
(Insd.; MBIA),
4.50%, 12/1/96 251,035
Valdez Marine Term. Rev.,
Arco Transn. Proj.,
1,500 Ser. A, 3.30%, 6/13/96 1,500,000
2,000 Ser. B, VRDN*,
3.70%, 6/5/96 2,000,000
---------------------
7,351,035
Arizona--7.1%
1,000 Arizona Edl. Ln. Mktg. Corp.,
ELR, Ser. A, VRDN*
(LC; Dresdner Bank AG),
3.70%, 6/5/96 1,000,000
4,000 Cochise Cnty. PCR, SWDR,
Arizona Elec. Pwr. Coop. Inc. Proj.,
3.30%, 9/1/96*** 4,000,000
2,000 Maricopa Cnty. PCC, PCR,
So. California Edison
Palo Verdi Proj.,
3.70%, 8/7/96 2,000,000
1,000 Mesa Muni. Dev. Corp.,
Ser. A,
3.55%, 9/4/96 1,000,000
1,000 Salt River Proj.
Agric. & Pwr. Dist.,
3.65%, 8/6/96 1,000,000
---------------------
9,000,000
---------------------
California--5.1%
1,000 California HEL Auth.,
Ser. E-5 (CS; SLMA),
4.25%, 6/1/96** 1,000,000
California St. PCFA, RRR,
1,200 Delano Proj., VRDN*
(LC; ABN-Amro Bank),
3.90%, 6/3/96 1,200,000
300 Ultra Power Malaga Proj., Ser. B,
VRDN* (LC; Bank of America),
3.95%, 6/3/96 300,000
California--(cont'd)
$ 3,000 California St. RAN's,
dtd. 4/25/96,
4.25%, 6/28/96 $ 3,002,850
1,000 Ventura Cnty. TRAN's,
dtd. 7/3/95,
4.50%, 7/2/96 1,000,700
---------------------
6,503,550
Colorado--1.6%
2,000 Colorado St. GFR, TRAN's,
Ser A, dtd. 7/6/95,
4.50%, 6/27/96 2,001,095
---------------------
Delaware--.1%
100 Delaware St. EDAR, Gas Facs.,
Delmarva Pwr. & Lt., VRDN*,
3.80%, 6/3/96 100,000
---------------------
Florida--1.1%
1,350 Putnam Cnty. Dev. Auth., PCR,
Seminole Elec. Co. Proj.,
Ser. H-1, VRDN*,
3.55%, 6/5/96 1,350,000
---------------------
Hawaii--1.6%
1,000 Hawaii St. GO,
Ser. BW (LC; FGIC),
5.15%, 3/1/97 1,010,311
1,000 Secondary Mkt. Svcs. Corp., SLR,
Ser. II, VRDN*
(LC; Nat'l. Westminster Bank PLC),
3.65%, 6/5/96 1,000,000
---------------------
2,010,311
---------------------
Illinois-8.9%
6,300 Chicago O'Hare Int'l. Arpt.,
Ser. B, VRDN*
(LC; Societe Generale Bank),
3.70%, 6/5/96 6,300,000
Illinois Hlth. FAR,
1,700 Hosp. Sisters Svc. Proj., Ser. E,
VRDN* (Insd.; MBIA),
3.50%, 6/5/96 1,700,000
2,800 Parkside Dev. Corp. Proj.,
VRDN* (LC; First Nat'l.
Bank of Chicago),
3.65%, 6/5/96 2,800,000
500 Southwestern DA, SWDR,
Shell Oil Co. Wood Riv. Proj.,
VRDN*,
4.00%, 6/3/96 500,000
---------------------
11,300,000
---------------------
</TABLE>
6
<PAGE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------
Principal
Amount
(000) Value
- -----------------------------------------------------------------------------------------------------
<S> <C>
Indiana--2.2%
$ 2,745 Sullivan PCR,
Rural Util./Hoosier Elec. Co.,
Ser. L4,
3.20%, 6/11/96 $ 2,745,000
---------------------
Kentucky--.2%
200 Boone Cnty. PCR,
Cincinnati Gas & Elec. Co.
Proj., Ser. A, VRDN*
(LC; Union Bank of Switzerland),
3.65%, 6/1/96 200,000
---------------------
Louisiana--.8%
1,000 Orleans Parish Sch. Brd.,
Ser. A (Insd.; MBIA),
7.00%, 6/1/96 1,020,000
---------------------
Maryland--1.6%
1,000 Anne Arundel Cnty. EDR,
Baltimore Gas & Elec. Co. Proj.,
3.80%, 8/7/96 1,000,000
1,000 Maryland St. Dept. of Trans.,
3.625%, 6/15/97 999,018
---------------------
1,999,018
---------------------
Massachusetts--3.3%
1,165 Massachusetts Hsg. FAGR,
Single Fam. Mtg. Prog.,
4.15%, 6/1/96** 1,165,000
3,000 Massachusetts IFA, PCR,
3.70%, 8/6/96 3,000,000
---------------------
4,165,000
---------------------
Minnesota--.8%
250 Minnesota St. HFA,
Ser. D (Insd.; MBIA),
3.80%, 8/1/96 250,000
750 University Minn. Univ. Revs.,
Ser F,
3.25%, 8/1/96*** 750,000
---------------------
1,000,000
Missouri--1.3%
Missouri EIERA, PCR,
Union Elec. Co. Proj.,
600 Ser. A (LC; Swiss Bank Corp.),
4.00%, 6/1/96*** 600,000
1,000 Ser. B (LC; Union Bank of
Switzerland),
4.00%, 6/1/96*** 1,000,000
---------------------
1,600,000
---------------------
- -----------------------------------------------------------------------------------------------------
Principal
Amount
(000) Value
- -----------------------------------------------------------------------------------------------------
Nebraska--2.8%
$ 1,600 Nebraska HEL Prog.,
Ser C, VRDN*
(LC; SLMA),
3.70%, 6/5/96 $ 1,600,000
2,000 Omaha Pub. Pwr. Dist., Elec.
Rev., Ser. A,
3.60%, 9/11/96 2,000,000
---------------------
3,600,000
---------------------
Nevada--.5%
700 Clark Cnty. AIR,
Sub Lien, Ser. A-2,
VRDN* (LC; Toronto-
Dominion Bank),
3.75%, 6/5/96 700,000
---------------------
New Hampshire--1.7%
New Hampshire St. BFA, PCR,
1,100 Pub. Svc. Co. of New Hampshire
Proj., Ser. D, VRDN*
(LC; Barclays Bank PLC),
3.80%, 6/5/96 1,100,000
1,000 Ser. A,
3.50%, 6/13/96 1,000,000
---------------------
2,100,000
---------------------
New York--11.0%
400 Gloversville Sch. Dist. GO,
(CS; FSA)
4.90%, 6/15/97 404,800
2,300 New York City GO,
Ser B-5, VRDN*
(Insd.; MBIA)
3.65%, 6/3/96 2,300,000
2,800 New York St. DAR,
St. Francis Ctr. at the Knolls,
VRDN* (LC; Banque Nationale
de Paribas),
3.90%, 6/3/96 2,800,000
2,000 New York St. EFC, SWDR,
Gen. Elec Proj., Ser. A,
3.30%, 7/10/96 2,000,000
1,000 New York St. ERDA, PCR,
Rochester Gas & Elec. Corp. Proj.,
(LC; Credit Suisse),
3.75%, 11/15/96*** 1,000,000
New York St. JDA, St. Gtd.,
2,585 Ser. A, VRDN*,
3.90%, 6/3/96 2,585,000
</TABLE>
7
<PAGE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------
SCHEDULES OF INVESTMENTS (unaudited)(continued)
- -----------------------------------------------------------------------------------------------------
GENERAL MUNICIPAL PORTFOLIO (cont'd)
- -----------------------------------------------------------------------------------------------------
Principal
Amount
(000) Value
- -----------------------------------------------------------------------------------------------------
New York (cont'd)
<S> <C>
New York St . JDA, St. Gtd.,
$ 700 Ser. B, VRDN*, (LC; Fuji Bank),
3.90%, 6/3/96 $ 700,000
100 3.90%, 6/3/96 100,000
2,000 New York St. PAR
3.25%, 9/1/96*** 2,000,000
---------------------
13,889,800
---------------------
Ohio-5.5%
4,400 Cuyahoga Cnty. Hosp. Rev.,
Univ. Hosp. Cleveland,
VRDN* (LC; Dai-Ichi Kangyo
Bank),
3.70%, 6/1/96 4,400,000
1,500 Ohio HFAMR,
Ser. A (LC; American Intl.
Group),
3.40%, 3/3/97** 1,500,000
1,000 Ohio St. Air Quality DAR,
JMG Fdg. Ltd. Proj., Ser. B,
VRDN* (LC; Societe Generale
Bank),
3.75%, 6/5/96 1,000,000
---------------------
6,900,000
---------------------
Oregon--.7%
905 Oregon St. GO, PCR,
Ser. C,
8.75%, 6/1/96 905,000
---------------------
Pennsylvania--4.2%
1,700 Emmaus GAR,
Ser. C-8, VRDN*
(LC; Midland Bank PLC),
3.90%, 6/5/96 1,700,000
2,000 Pennsylvania St. HEA, SLR,
Ser. A, VRDN*
(LC; SLMA),
3.65%, 6/3/96 2,000,000
1,000 Philadelphia TRAN's,
Ser. A, dtd. 7/6/95,
4.50%, 6/27/96 1,000,377
600 York Cnty. IDA, IDR,
Preston Trucking Co. Proj.,
VRDN* (LC; Mellon Bank),
3.75%, 6/3/96 600,000
---------------------
5,300,377
---------------------
- -----------------------------------------------------------------------------------------------------
Principal
Amount
(000) Value
- -----------------------------------------------------------------------------------------------------
Rhode Island--.8%
$ 1,000 Rhode Island HMFC,
Home Ownership Oppty. Prog.,
Ser. B,
3.90%, 6/27/96** $ 1,000,000
---------------------
South Carolina--.8%
985 York Cnty. PCR,
Saluda River Proj., Ser. '84E,
3.55%, 8/15/96*** 985,000
---------------------
Tennessee--2.6%
2,300 Hamilton Cnty. IDR, Searboard
Feed of Chattanooga Proj.,
VRDN* (LC; Bank of New York),
3.85%, 6/6/96 2,300,000
1,000 Metropolitan Nashville Arpt.,
VRDN* (Insd.; FGIC),
3.60%, 6/5/96 1,000,000
---------------------
3,300,000
---------------------
Texas--17.2%
1,000 Brazos HEA,
Ser. B-1, VRDN*
(CS; SLMA),
3.60%, 6/5/96 1,000,000
2,300 Brazos River Auth., PCR,
Texas Utils. Elec. Co. Proj.,
Ser. A, (LC; Canadian Imperial
Bank),
3.25%, 8/6/96 2,300,000
2,200 Brazos River Harbor Navigation,
Dist. of Brazoria Cnty.,
3.55%, 7/12/96 2,200,000
1,000 Gulf Coast IDA, Marine Term. Rev.,
Amoco Oil Co. Proj.,
3.60%, 12/1/96 1,000,000
5,000 Gulf Coast WDA, PCR,
Exxon Proj.,
3.45%, 7/8/96 5,000,000
3,500 Texas A&M Univ., Perm.
Univ. Fd., Ser. B,
3.35%, 6/10/96 3,500,000
765 Texas HEA, EEIR,
Ser. B, VRDN*
(Insd.; FGIC),
3.50%, 6/5/96 765,000
4,000 Texas St. Pub. FAR,
Ser. A,
3.30%, 7/25/96 4,000,000
2,000 Texas St. TRAN's,
Ser. A, dtd. 9/1/95,
4.75%, 8/30/96 2,007,758
---------------------
21,772,758
---------------------
</TABLE>
8
<PAGE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------
Principal
Amount
(000) Value
- -----------------------------------------------------------------------------------------------------
Utah --2.8%
<S> <C>
$ Intermountain Pwr. Agy., PSR,
500 Ser. A,
3.90%, 7/1/96 $ 500,024
1,000 Ser. E (LC; Swiss Bank Corp.),
3.35%, 9/15/96*** 1,000,000
2,000 Utah St. Brd. Regents SLR,
Ser. L, VRDN*
(Insd.; AMBAC),
3.65%, 6/5/96 2,000,000
---------------------
3,500,024
---------------------
Washington--.6%
500 Washington St.,
Ser. '86D,
8.00%, 9/1/96 505,253
305 Washington St. HF Cmnty.,
Single Fam. Mtg. Prog., Ser. 1A,
4.10%, 6/1/96** 305,000
---------------------
810,253
Wisconsin--3.1%
3,900 Wisconsin HFFAR,
Hosp. Sisters Svc. Proj.,
Ser. G, VRDN* (Insd.; MBIA),
3.50%, 6/5/96 3,900,000
---------------------
Total Investments
(amortized cost--$123,508,221+) 97.8% $ 123,508,221
Other Assets in Excess
of Other Liabilities 2.2 2,802,561
----- ---------------------
Total Net Assets
(applicable to 126,402,185 shares
outstanding at $1.00 per share) 100.0% $ 126,310,782
===== =====================
- -----------------------------------------------------------------------------------------------------
CALIFORNIA MUNICIPAL PORTFOLIO
- -----------------------------------------------------------------------------------------------------
California--96.2%
$ 2,600 Anaheim Ctfs. Partn.,
1993 Ref. Projs.,
VRDN* (LC; ABN-Amro Bank),
3.30%, 6/5/96 $ 2,600,000
500 California HF Agy. Rev.,
Home Mtg. Prog., Ser. D,
3.55%, 4/1/97 500,000
California HFF,
3,000 Kaiser Permanente Proj.,
Ser. A , VRDN*,
3.40%, 6/5/96 3,000,000
$ 1,000 Scripps Mem. Hosp. Proj., Ser. A,
VRDN* (LC; Morgan Guaranty
Trust Co., Inc.),
3.20%, 6/6/96 $ 1,000,000
4,300 California HFFAR, Memorial
Hlth. Svcs. Proj., VRDN*,
3.40%, 6/5/96 4,300,000
1,000 California PCFA,
Pacific Gas & Elec. Co. Proj., Ser. D,
(LC; Union Bank of Switzerland),
3.55%, 10/1/96 1,000,000
California PCFA, PCR
Homestake Mining Proj.,
VRDN* (LC; Bank of Nova Scotia),
2,200 Ser. '84A, 3.55%, 6/5/96 2,200,000
800 Ser. '84B, 3.55%, 6/5/96 800,000
Pacific Gas & Elec. Co. Proj.,
2,000 Ser. A (LC; Swiss Bank Corp.),
3.30%, 8/15/96 2,000,000
1,000 Ser. C (LC; Credit Suisse),
3.15%, 8/1/96 1,000,000
500 So. Cal. Edison Proj., Ser. C,
3.30%, 6/17/96 500,000
4,400 California PCFA, PCR, RRR,
Wadham Energy Proj., Ser. C,
VRDN* (LC; Banque Nationale
de Paribas)
3.60%, 6/5/96 4,400,000
California PCFA, RRR,
Delano Proj., VRDN*,
600 (LC; ABN-Amro Bank),
3.90%, 6/3/96 600,000
400 (LC; Algemene Bank),
3.90%, 6/3/96 400,000
Ultrapower Malaga Corp. Proj.,
VRDN*, (LC;Bank of America),
1,300 Ser. A, 3.95%, 6/3/96 1,300,000
1,300 Ser. B, 3.95%, 6/3/96 1,300,000
1,800 Ultrapower Rocklin Proj., Ser. A,
VRDN* (LC; Security Pacific
National Bank),
3.95%, 6/3/96 1,800,000
1,900 California PCFA, SWDR,
Shell Co. Martinez Proj., Ser. A,
VRDN*, 3.95%, 6/3/96 1,900,000
4,600 California St. RAN's,
dtd. 4/25/96, 4.25%, 6/28/96 4,601,847
California SCD Corp. Rev., Ind'l. Dev.,
395 Florestone Prod. Proj., VRDN*
(LC; California St. Tchrs. Ret. Fd.),
3.60%, 6/5/96 395,000
</TABLE>
9
<PAGE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------
CALIFORNIA MUNICIPAL PORTFOLIO (cont'd)
- -----------------------------------------------------------------------------------------------------
Principal
Amount
(000) Value
- -----------------------------------------------------------------------------------------------------
<S> <C>
$ 1,800 South Bay Circuits Proj., VRDN*
(LC; California St. Tchrs. Ret. Fd.),
3.60%, 6/5/96 $ 1,800,000
1,000 City of Los Angeles,
Waste Water Sys.,
3.55%, 8/8/96 1,000,000
2,000 Contra Costa TA, STR,
Ser. A (Insd.; FGIC),
5.00%, 3/1/97 2,021,523
1,400 East Bay MUD,
3.55%, 8/8/96 1,400,000
900 Long Beach HFR,
Mem. Hlth. Svcs. Proj., VRDN*,
3.40%, 6/5/96 900,000
1,500 Los Angeles Cnty. MTA, STR,
Ser.A, (LC; Morgan Guaranty
Trust Co. Inc., Union Bank of
Switzerland and Credit Suisse),
3.55%, 9/11/96 1,500,000
1,700 (LC; NatOl. Westminster Bank PLC),
3.60%, 8/12/96 1,700,000
1,000 Monterey Cnty. FAR,
Reclamation & Dist. Proj., VRDN*
(LC; Dai-Ichi Kangyo Bank),
3.65%, 6/6/96 1,000,000
1,100 No. California Pwr. Agy., PPR.,
(Insd.; AMBAC),
7.50%, 7/1/96 1,125,174
2,000 Sacramento Cnty. TRAN's,
dtd. 7/5/95,
4.75%, 10/4/96 2,005,642
1,800 Sacramento MUD, Ser. I,
(LC; Bayerische Landensbank
Girozentrale),
3.25%, 6/3/96 1,800,000
1,200 Santa Clara Cnty. Fing. Auth.,
Lease Rev.,VMC Fac. Replacement
Proj., Ser. B, VRDN* (LC; Union
Bank of Switzerland),
3.40%, 6/5/96 1,200,000
500 Santa Clara Valley WD,
5.75%, 6/1/96 500,000
State of California GO,
1,000 3.55%, 7/10/96 1,000,000
2,900 3.60%, 8/6/96 2,900,000
1,500 3.60%, 8/8/96 1,500,000
2,000 Ukiah Elec. Rev., Ser. A,
8.00%, 6/1/96 2,040,000
- -----------------------------------------------------------------------------------------------------
Principal
Amount
(000) Value
- -----------------------------------------------------------------------------------------------------
$ 3,200 Ventura Cnty. TRAN's,
dtd. 7/3/95,
4.50%, 7/2/96 $ 3,201,983
---------------------
64,191,169
---------------------
Puerto Rico--3.6%
Puerto Rico Gov't. Dev. Bank,
1,500 3.20%, 6/12/96 1,500,000
900 3.20%, 6/17/96 900,000
---------------------
2,400,000
---------------------
Total Investments
(amortized cost--$66,591,169+) 99.8% $ 66,591,169
Other Assets in Excess
of Other Liabilities 0.2 160,938
----- ---------------------
Total Net Assets
(applicable to 66,782,368 shares
outstanding at $1.00 per share) 100.0% $ 66,752,107
===== =====================
- -----------------------------------------------------------------------------------------------------
NEW YORK MUNICIPAL PORTFOLIO
- -----------------------------------------------------------------------------------------------------
New York--94.5%
$ 1,000 Broome Cnty, BAN's,
dtd. 4/18/96,
4.25%, 4/18/97 $ 1,003,562
300 Broome Cnty, Ctfs., Partn.,
Pub. Safety Fac., (Insd.; MBIA),
3.75%, 4/1/97 299,867
1,000 Gloversville Sch. Dist. GO,
(CS.; FSA), 4.90%, 6/15/97 1,012,000
500 Manhasset Sch. Dist. GO,
7.25%, 1/1/97 510,228
500 MTA, Ser. F,
8.375%, 7/1/96 511,822
1,000 Monroe Cnty. BAN's,
Ser. A, dtd. 6/8/95,
4.50%, 6/7/96 1,000,095
415 Montgomery Cnty. GO,
(Insd.; AMBAC)
4.50%, 5/1/97 416,830
1,000 Nassau Cnty. BAN's,
Ser. B, dtd. 5/14/96,
3.60%, 11/15/96 1,001,778
1,000 Nassau Cnty. GO,
Ser. H (Insd.; MBIA),
3.80%, 6/15/96 1,000,111
100 Nassau Cnty. IDA, Res. Fac. Rev.,
Cold Spring Harbor Lab. Proj.,
VRDN* (LC; Morgan Guaranty
Trust Co., Inc.),
3.65%, 6/3/96 100,000
</TABLE>
10
<PAGE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------
Principal
Amount
(000) Value
- -----------------------------------------------------------------------------------------------------
<S> <C>
$ 2,000 New York City GO,
Ser. A-7 (LC; Morgan Guaranty
Trust Co., Inc.)
3.50%, 8/12/96 $ 2,000,000
New York City GO,
2,000 Ser. B-5, VRDN* (Insd; MBIA),
3.65%, 6/3/96 2,000,000
800 Ser. E-5, VRDN*
(LC; Sumitomo Bank ),
3.85%, 6/3/96 800,000
500 New York City IDA, CFR,
Childrens Oncology Soc. Proj.,
VRDN* (LC; Barclays Bank PLC)
3.50%, 6/5/96 500,000
New York City IDA, IDR,
1,000 JFK Field Hotel Assoc. Proj.,
VRDN* (LC; Banque Indosuez),
3.70%, 6/5/96 1,000,000
1,000 La Guardia Arpt. Assoc. Proj.,
VRDN* (LC; Banque Indosuez),
3.70%, 6/5/96 1,000,000
2,000 New York City MWFA,
(LC; Credit Suisse),
3.75%, 7/8/96 2,000,000
1,500 New York City MWFSSR, Ser. A,
7.00%, 6/15/96 1,531,797
New York City Trust CRR,
2,000 Carnegie Hall Proj., VRDN*
(LC; Dai-Ichi Kangyo Bank),
3.35%, 6/5/96 2,000,000
1,500 Museum of Broadcasting Proj.,
VRDN* (LC; Sumitomo Bank),
3.75%, 6/5/96 1,500,000
New York DAR,
2,615 Metropolitan Museum of Art Proj.,
Ser. B, VRDN* (Insd.; MBIA),
3.35%, 6/5/96 2,615,000
1,400 Miriam Osborn Mem. Home Proj.,
Ser. A, VRDN* (LC; Banque
Nationale de Paribas),
3.75%, 6/5/96 1,400,000
1,980 New York Univ. Proj.,
(Insd.; MBIA),
6.625%, 6/3/96 2,023,998
Sloan Kettering Mem. Hosp. Proj.,
(LC; Chemical Bank),
1,000 Ser. B, 3.65%, 8/8/96 1,000,000
1,000 Ser. C, 3.10%, 6/10/96 1,000,000
1,000 Sloan Kettering Mem. Hosp. Proj.
3.60%, 8/6/96 1,000,000
- -----------------------------------------------------------------------------------------------------
Principal
Amount
(000) Value
- -----------------------------------------------------------------------------------------------------
$ 600 St. Francis Ctr. at the Knolls,
VRDN* (LC; Banque Nationale
de Paribas),
3.90%, 6/3/96 $ 600,000
500 New York St. EFC, PCR,
Revolving Fd. Pooled Ln. Prog.,
Ser. A,
3.70%, 9/15/96 500,063
2,000 New York St. EFC, SWDR,
Gen. Elec. Co. Proj., Ser. A,
3.55%, 8/6/96 2,000,000
New York St. ERDA, PCR,
1,000 New York St. Elec. &
Gas Co. Proj., Ser. B,
3.85%, 10/15/96*** 1,000,000
Rochester Gas & Elec. Co. Proj.,
VRDN*,
1,500 (LC; Bank of New York),
3.45%, 6/3/96 1,500,000
1,000 (LC; Credit Suisse),
3.75%, 11/15/96*** 1,000,000
New York St. JDA, St. Gtd., VRDN*,
1,000 Ser. A, 3.90%, 6/3/96 1,000,000
3,145 Ser. B, 3.90%, 6/3/96 3,145,000
Special Purpose,
950 Ser. A, 3.90%, 6/3/96 950,000
1,210 Ser. B, 3.90%, 6/3/96 1,210,000
3,000 New York St. LGAC, Ser. E, VRDN*
(LC; Canadian Imperial Bank),
3.60%, 6/5/96 3,000,000
1,000 New York St. Mun. Asst. Corp.,
Ser. F,
3.70%, 8/13/96 1,000,000
2,000 New York St. PAR,
3.25%, 9/1/96*** 2,000,000
1,000 New York St., Ser. Q,
3.70%, 6/3/96 1,000,000
595 Niagra Cnty. IDA, IDR,
Pyron Corp. Proj., VRDN*
(LC; Chemical Bank),
3.70%, 6/5/96 595,000
1,600 Niagra Cnty. Solid Waste IDA,
Browning Ferris, Ser. A,
3.65%, 6/11/96 1,600,000
2,500 Port Auth. of New York & New Jersey,
Ser. A,
3.40%, 6/17/96 2,500,000
1,000 St. Lawrence Cnty. IDA, EIR,
Reynolds Metals Co. Proj., VRDN*
(LC; Royal Bank of Canada),
3.70%, 6/5/96 1,000,000
</TABLE>
11
<PAGE>
May 31, 1996
SCHEDULES OF INVESTMENTS (unaudited)(continued)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------
NEW YORK INCOME PORTFOLIO (cont'd)
- -----------------------------------------------------------------------------------------------------
Principal
Amount
(000) Value
- -----------------------------------------------------------------------------------------------------
<S> <C>
$ 1,000 Suffolk Cnty. IDA, IDR,
Nissequogue Cogen Ptnrs. Proj.,
VRDN*
(LC; Toronto-Dominion Bank),
3.60%, 6/5/96 $ 1,000,000
1,000 Suffolk Cnty. Wtr. Auth., BAN's,
VRDN*, dtd. 12/21/94,
3.50%, 6/5/96 1,000,000
450 Wallkill IDA, PCR,
Reynolds Metals Co. Proj., VRDN*
(LC; Dresdner Bank A.G.),
3.65%, 6/5/96 450,000
---------------------
58,277,151
---------------------
- -----------------------------------------------------------------------------------------------------
Principal
Amount
(000) Value
- -----------------------------------------------------------------------------------------------------
Puerto Rico--6.6%
Puerto Rico Gov't. Dev. Bank
$ 2,000 3.20%, 6/12/96 $ 2,000,000
2,100 3.20%, 6/17/96 2,100,000
---------------------
4,100,000
---------------------
Total Investments
(amortized cost--$62,377,151+) 101.1% $ 62,377,151
Other Liabilities in Excess
of Other Assets (1.1) (714,082)
----- ---------------------
Total Net Assets
(applicable to 61,686,870 shares
outstanding at $1.00 per share) 100.0% $ 61,663,069
===== =====================
</TABLE>
----------------------------------------------------------------------------
+ Federal income tax basis of portfolio securities is the same as for
financial reporting purposes.
# Variable rate securities whose interest rates reset weekly.
* Variable Rate Demand Notes (VRDN) are instruments whose interest rates
change on a specified date (such as a coupon date or interest payment
date) and/or whose interest rates vary with changes in a designated base
rate (such as the prime interest rate).
Maturity date shown is date of next rate change.
** These issues carry a mandatory put feature. Date shown is the exercise
date of the put.
*** These issues carry an optional put feature. Date shown is the exercise
date of the put.
See accompanying notes to financial statements.
12
<PAGE>
General Abbreviations:
AD Apartment Development
AIR Airport Improvement Revenue
AMBAC American Mortgage Bond Assurance Corporation
BAN Bond Anticipation Note
BFA Business Finance Authority
CDR Community Development Revenue
CFR Civic Facility Revenue
CRR Cultural Resources Revenue
CS Credit Support
DA Development Authority
DAR Dormitory Authority Revenue
DWR Department of Water Resources
EDA Economic Development Authority
EDAR Economic Development Authority Revenue
EDR Economic Development Revenue
EEIR Education Equipment & Improvement Revenue
EFC Environmental Facilities Corporation
EFR Electric Facilities Revenue
EIERA Environmental Improvement & Energy Resource Authority
EIR Environment Improvement Revenue
ELR Educational Loan Revenue
ERDA Energy Research & Development Authority
FA Finance Authority
FAGR Finance Agency Revenue
FAR Finance Authority Revenue
FGIC Financial Guaranty Insurance Corporation
FSA Financial Security Assurance
GAR General Authority Revenue
GFR General Fund Revenue
GO General Obligation
HAR Hospital Authority Revenue
HDA Housing Development Authority
HEA Higher Education Authority
HEAA Higher Education Assistance Revenue
HEL Higher Education Loan
HF Housing Finance
HFA Housing Finance Authority
HFAMR Housing Finance Agency Mortgage Revenue
HFASFR Housing Finance Authority Single Family Revenue
HFC Housing Finance Committee
HFDCR Health Facilities Development Corporation Revenue
HFF Health Facilities Financing
HFFAR Health Facilities Financing Authority Revenue
HFR Health Facilities Revenue
HHEFAR Health & Higher Educational Facilities Authority Revenue
HR Hospital Revenue
HMFA Housing Mortgage Finance Authority
HMFC Housing Mortgage Finance Corporation
ID Industrial Development
IDA Industrial Development Authority
IDB Industrial Development Board
IDR Industrial Development Revenue
IFA Industrial Finance Agency
JDA Job Development Authority
LC Letter of Credit
LGAC Local Government Assistance Corporation
MBIA Municipal Bond Investors Assurance
MFA Municipal Finance Authority
MFHR Multiple Family Housing Revenue
MMR Multiple Family Mortgage Revenue
MTA Metropolitan Transportation Authority
MUD Municipal Utility District
MUDER Municipal Utility District Electric Revenue
MWFA Municipal Water Finance Authority
MWFSSR Municipal Water Finance Sewer System Revenue
PAR Power Authority Revenue
PCC Pollution Control Corporation
PCFA Pollution Control Financing Authority
PCFR Pollution Control Facilities Revenue
PCR Pollution Control Revenue
PFA Public Facility Authority
PPA Public Power Authority
PPR Public Power Revenue
PSA Public School Authority
PSR Power Supply Revenue
RAN Revenue Anticipation Note
RRR Resource Recovery Revenue
SCD Statewide Communities Development
SLMA Student Loan Marketing Association
SLR Student Loan Revenue
STR Sales Tax Revenue
SWDR Solid Waste Disposal Revenue
TA Transportation Authority
TAN Tax Anticipation Note
TRAN Tax Revenue Anticipation Note
WD Water District
WDA Waste Disposal Authority
13
<PAGE>
May 31, 1996
STATEMENTS OF ASSETS AND LIABILITIES (unaudited)
<TABLE>
<CAPTION>
General California New York
Primary Government Municipal Municipal Municipal
Portfolio Portfolio Portfolio Portfolio Portfolio
-------------- ------------ ------------ ----------- -----------
<S> <C> <C> <C> <C> <C>
Assets
Investments, at value
(amortized cost--$1,663,756,341,
$99,895,612, $123,508,221,
$66,591,169 and $62,377,151,
respectively)....................... $1,663,756,341 $ 99,895,612 $123,508,221 $66,591,169 $62,377,151
Cash.................................. 775,694 442,383 -- 67,147 --
Receivable for investments sold....... -- -- 6,024,000 500,000 1,400,505
Receivable for fund shares sold....... 234,564 1,491 1,366 -- 300
Receivable from Adviser............... -- -- -- -- 1,185
Interest receivable................... 1,859,075 158,491 1,036,039 576,004 417,994
Prepaid expenses and
other assets........................ 156,424 22,861 79,226 63,707 29,257
-------------- ------------ ------------ ----------- -----------
Total Assets.......................... 1,666,782,098 100,520,838 130,648,852 67,798,027 64,226,392
-------------- ------------ ------------ ----------- -----------
Liabilities
Payable for investments purchased..... -- -- 1,406,143 -- 1,014,858
Payable for fund shares redeemed...... 29,465,414 867,436 2,668,046 939,339 971,927
Due to custodian...................... -- -- 45,136 -- 488,607
Investment advisory fee payable....... 18,718 654 1,464 580 --
Distribution fee payable.............. 11,357 684 881 463 428
Shareholder services fee payable...... 84,243 5,801 6,758 3,363 3,150
Administrative services fee payable... 2,271 137 176 92 85
Dividends payable..................... 2,983,271 186,770 135,019 75,997 63,339
Other payables and accrued
expenses............................ 753,123 60,217 74,447 26,086 20,929
-------------- ------------ ------------ ----------- -----------
Total Liabilities..................... 33,318,397 1,121,699 4,338,070 1,045,920 2,563,323
-------------- ------------ ------------ ----------- -----------
Net Assets
Par value ($.0001 per share,
10 billion shares authorized
for each portfolio)................. 163,350 9,942 12,640 6,678 6,169
Paid-in-surplus....................... 1,633,300,351 99,389,237 126,388,879 66,775,690 61,680,701
Accumulated net realized
loss on investments................. -- (40) (90,737) (30,261) (23,801)
-------------- ------------ ------------ ----------- -----------
Total Net Assets...................... $1,633,463,701 $ 99,399,139 $126,310,782 $66,752,107 $61,663,069
============== ============ ============ =========== ===========
Fund shares outstanding............... 1,633,502,871 99,421,372 126,402,185 66,782,368 61,686,870
-------------- ------------ ------------ ----------- -----------
Net asset value, offering and
redemption price per share.......... $1.00 $1.00 $1.00 $1.00 $1.00
============== ============ ============ =========== ===========
</TABLE>
See accompanying notes to financial statements.
14
<PAGE>
Six months ended May 31, 1996
STATEMENTS OF OPERATIONS (unaudited)
<TABLE>
<CAPTION>
General California New York
Primary Government Municipal Municipal Municipal
Portfolio Portfolio Portfolio Portfolio Portfolio
-------------- ------------ ------------ ----------- -----------
<S> <C> <C> <C> <C> <C>
Investment Income
Interest........................... $ 46,954,185 $ 3,105,897 $ 2,393,927 $ 1,201,145 $ 1,060,346
-------------- ------------ ------------ ----------- -----------
Operating Expenses
Investment advisory fee (note 2a).. 3,499,591 282,664 325,465 179,540 152,785
Distribution fee (note 2b)......... 2,124,744 143,161 166,925 89,770 76,393
Transfer and dividend
disbursement agent fees.......... 1,158,732 41,025 41,024 11,821 15,673
Administrative services fee
(note 2d)........................ 424,949 28,632 33,385 17,954 15,278
Registration fees.................. 237,775 27,417 47,011 2,029 1,568
Shareholder services fee (note 2c). 166,903 12,004 13,501 7,174 7,133
Custodian fees (note 2e)........... 70,624 24,405 21,145 9,730 8,219
Reports and notices to
shareholders..................... 56,434 1,328 1,880 730 814
Auditing, consulting and tax
return preparation fees.......... 19,763 8,200 8,200 8,201 8,200
Directors' fees and expenses....... 14,373 12,151 12,132 12,132 12,151
Legal fees......................... 4,906 780 688 602 598
Miscellaneous...................... 79,961 8,236 9,636 5,882 1,022
-------------- ------------ ------------ ----------- -----------
Total operating expenses......... 7,858,755 590,003 680,992 345,565 299,834
Less: Investment advisory fee
waived (note 2a)................ -- (11,198) (12,095) (28,379) (4,524)
Less: Expense offset
arrangement (note 2e)........... (4,975) (6,166) (1,195) (2,992) (1,868)
-------------- ------------ ------------ ----------- -----------
Net operating expenses........... 7,853,780 572,639 667,702 314,194 293,442
-------------- ------------ ------------ ----------- -----------
Net investment income............ 39,100,405 2,533,258 1,726,225 886,951 766,904
Net realized gain (loss)
on investments.................. -- (40) 1,357 (8,711) --
-------------- ------------ ------------ ----------- -----------
Net increase in net assets
resulting from operations........ $ 39,100,405 $ 2,533,218 $ 1,727,582 $ 878,240 $ 766,904
============== ============ ============ =========== ===========
</TABLE>
See accompanying notes to financial statements.
15
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Primary Portfolio Government Portfolio
----------------------------------- -----------------------------------
Six months ended Year ended Six months ended Year ended
May 31, 1996 (a) November 30, 1995 May 31, 1996 (a) November 30, 1995
---------------- ----------------- ---------------- -----------------
<S> <C> <C> <C> <C>
Operations
Net investment income.......... $ 39,100,405 $ 80,795,389 $ 2,533,258 $ 5,452,937
Net realized gain (loss)
on investments............... -- 68 (40) 700
--------------- --------------- ------------- -------------
Net increase in net
assets resulting from
operations................ 39,100,405 80,795,457 2,533,218 5,453,637
--------------- --------------- ------------- -------------
Dividends and Distributions
to Shareholders
Net investment income.......... (39,100,473) (80,795,389) (2,533,958) (5,452,937)
Net realized gains............. -- (482) -- (494)
--------------- --------------- ------------- -------------
Total dividends and
distributions to
shareholders............... (39,100,473) (80,795,871) (2,533,958) (5,453,431)
--------------- --------------- ------------- -------------
Fund Share Transactions
Net increase (decrease)
in net assets derived from
fund share transactions...... (37,665,592) 217,361,004 (9,175,151) (4,642,930)
--------------- --------------- ------------- -------------
Increase due to
voluntary capital
contribution by adviser
(note 2f)................... -- -- -- --
--------------- --------------- ------------- -------------
Total increase
(decrease) in
net assets................... (37,665,660) 217,360,590 (9,175,891) (4,642,724)
Net Assets
Beginning of period............ 1,671,129,361 1,453,768,771 108,575,030 113,217,754
--------------- --------------- ------------- -------------
End of period.................. $ 1,633,463,701 $ 1,671,129,361 $ 99,399,139 $ 108,575,030
=============== =============== ============= =============
Shares Issued and Redeemed
(all at $1.00 per share)
Issued......................... 5,088,798,789 8,545,299,477 303,188,451 561,063,508
Issued in reinvestment
of dividends and
distributions................ 37,535,277 77,748,816 2,475,390 5,335,254
Redeemed....................... (5,163,999,658) (8,405,687,289) (314,838,992) (571,041,692)
--------------- --------------- ------------- -------------
Net increase (decrease)...... (37,665,592) 217,361,004 (9,175,151) (4,642,930)
=============== =============== ============= =============
</TABLE>
(a) Unaudited
See accompanying notes to financial statements.
16
<PAGE>
<TABLE>
<CAPTION>
General Municipal Portfolio California Municipal Portfolio New York Municipal Portfolio
- ----------------------------------- ------------------------------------ ------------------------------------
Six months ended Year ended Six months ended Six months ended Year ended Six months ended
May 31, 1996 (a) November 30, 1995 May 31, 1996 (a) May 31, 1996 (a) November 30, 1995 May 31, 1996 (a)
- ---------------- ----------------- ---------------- ---------------- ----------------- ----------------
<S> <C> <C> <C> <C> <C>
$ 1,726,225 $ 3,880,838 $ 886,951 $ 1,946,409 $ 766,904 $ 1,582,050
1,357 (33,497) (8,711) (618,234) -- (19,669)
------------- ------------- ------------- ------------- ------------- -------------
1,727,582 3,847,341 878,240 1,328,175 766,904 1,562,381
------------- ------------- ------------- ------------- ------------- -------------
(1,726,225) (3,880,838) (886,951) (1,946,409) (766,904) (1,582,050)
-- -- -- -- -- --
------------- ------------- ------------- ------------- ------------- -------------
(1,726,225) (3,880,838) (886,951) (1,946,409) (766,904) (1,582,050)
------------- ------------- ------------- ------------- ------------- -------------
10,344,852 7,256,685 (9,151,269) 14,607,520 9,319,944 4,385,876
------------- ------------- ------------- ------------- ------------- -------------
-- -- -- 604,407 -- --
------------- ------------- ------------- ------------- ------------- -------------
10,346,209 7,223,188 (9,159,980) 14,593,693 9,319,944 4,366,207
115,964,573 108,741,385 75,912,087 61,318,394 52,343,125 47,976,918
------------- ------------- ------------- ------------- ------------- -------------
$ 126,310,782 $ 115,964,573 $ 66,752,107 $ 75,912,087 $ 61,663,069 $ 52,343,125
============= ============= ============= ============= ============= =============
383,557,014 667,188,766 160,222,027 296,613,031 170,249,328 303,848,325
1,667,091 3,738,051 874,360 1,848,545 714,853 1,487,169
(374,879,253) (663,670,132) (170,247,656) (283,854,056) (161,644,237) (300,949,618)
------------- ------------- ------------- ------------- ------------- -------------
10,344,852 7,256,685 (9,151,269) 14,607,520 9,319,944 4,385,876
============= ============= ============= ============= ============= =============
</TABLE>
17
<PAGE>
May 31, 1996
NOTES TO FINANCIAL STATEMENTS (unaudited)
1. Organization and Significant Accounting Policies
OCC Cash Reserves (formerly Quest Cash Reserves, Inc; the "Fund") is
registered under the Investment Company Act of 1940 as an open-end management
investment company. The Fund has five portfolios: the Primary Portfolio
("Primary"), the Government Portfolio ("Government"), the General Municipal
Portfolio ("General"), the California Municipal Portfolio ("California") and the
New York Municipal Portfolio ("New York"). Each Portfolio is considered to be a
separate entity for financial reporting and tax purposes. OpCap Advisors (the
"Adviser") and OCC Distributors (the "Distributor"), both majority-owned (99%)
subsidiaries of Oppenheimer Capital, serve as each Portfolio's adviser and
distributor, respectively.
The preparation of the financial statements in accordance with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts and disclosures in the financial
statements. The following is a summary of significant accounting policies
consistently followed by the Fund in the preparation of its financial
statements:
(a) Valuation of Investments
Each Portfolio values its investments on the basis of amortized cost which
approximates market value.
(b) Federal Income Taxes
Each Portfolio intends to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and distributes all of
its taxable and non-taxable income to its shareholders; accordingly, no Federal
income tax provision is required.
(c) Deferred Organization Expenses
The following costs were incurred by each Portfolio, in connection with its
organization: California-$19,000 and New York-$21,000. These costs have been
deferred and are being amortized to expense on a straight line basis over sixty
months from commencement of each Portfolio's operations.
(d) Investment Transactions and Other Income
Investment transactions are accounted for on the trade date. Cost of
investments sold is determined on the basis of identified cost. Interest income
is accrued as earned. Premiums are amortized by each Portfolio and discounts are
accreted by Primary and Government to interest income over the lives of the
respective securities.
(e) Dividends and Distributions
Dividends from net investment income are declared daily and paid monthly by each
Portfolio. Distributions of net realized short-term capital gains, if any, are
declared and paid annually by each Portfolio.
(f) Repurchase Agreements
Each Portfolio may enter into repurchase agreements as part of its
investment program. The Portfolios' custodian takes possession of the collateral
pledged by the counterparty. The collateral is marked-to-market daily to ensure
that the value, plus accrued interest, is at least equal to the repurchase
price. In the event of default of the obligor to repurchase, the
18
<PAGE>
Portfolio has the right to liquidate the collateral and apply the proceeds in
satisfaction of the obligation. Under certain circumstances, in the event of
default or bankruptcy by the counterparty to the agreement, realization and/or
retention of the collateral or proceeds may be subject to legal proceedings.
(g) Allocation of Expenses
Expenses specifically identifiable to a particular Portfolio are borne by
that Portfolio. Other expenses are allocated to each Portfolio based on its net
assets in relation to the total net assets of all applicable Portfolios or
another reasonable basis.
2. Investment Advisory Fee, Distribution Fee, Shareholder Services Fee
and Other Transactions with Affiliates
(a) Under the Investment Advisory Agreement, each Portfolio pays the
Adviser a monthly investment advisory fee at the annual rate of .50% of the
first $100 million of average daily net assets, .45% on the next $200 million of
average daily net assets, and .40% on average daily net assets in excess of $300
million. The Adviser has agreed to reimburse each Portfolio to the extent that
the combined operating expenses of the Portfolio exceed 1.00% of its average
daily net assets for any fiscal year. For the six months ended May 31, 1996, the
Adviser waived $11,198, $12,095, $28,379 and $4,524 in investment advisory fees
for Government, General, California and New York, respectively.
(b) The Fund has adopted a Distribution Plan (the "Plan") pursuant to which
each Portfolio pays the Adviser a monthly fee at an annual rate of .25% of each
Portfolio's average daily net assets and the Adviser uses such amounts in their
entirety for (i) payments to broker-dealers, banks and other financial
intermediaries for their distribution assistance provided to the Portfolio and
(ii) otherwise promoting the sale of shares of the Fund. For the six months
ended May 31, 1996, substantially all fees under the Plan were paid to
Oppenheimer & Co., Inc., an affiliated broker-dealer of the Adviser.
(c) A portion of the shareholder services fee for each Portfolio is payable
to Oppenheimer & Co., Inc. Each Portfolio reimburses Oppenheimer & Co., Inc. for
a portion of its costs in providing it with shareholder services; for the six
months ended May 31, 1996, amounts paid and/or accrued were: Primary $160,005;
Government $9,621; General $12,194; California $7,165; and New York $5,081.
(d) Each Portfolio pays Oppenheimer & Co., Inc. and certain other broker-
dealers for administrative services performed for shareholder accounts. For the
six months ended May 31, 1996, payments to Oppenheimer & Co., Inc. were: Primary
$424,949; Government $28,632; General $33,385; California $17,954; and New York
$15,278.
(e) The Fund benefits from an expense offset arrangement with the custodian
bank where uninvested cash balances earn credits that reduce monthly fees. Had
these cash balances been invested in income producing securities, they would
have generated income for the Fund.
(f) On December 7, 1994 the Adviser voluntarily purchased from the
California Municipal Portfolio $1,000,000 par, Orange County Tax and Revenue
Anticipation Fixed Rate Notes, 4.50% coupon maturing July 19, 1995 and
$1,000,000 par, Orange County Tax and Revenue Anticipation Floating Rate Notes
for an amount which exceeded their fair market value by $604,407. The Portfolio
recognized a realized loss on the sale and received a capital contribution of an
equal amount from the Adviser. For tax purposes, the capital contribution was
applied against the realized losses for the year ended November 30, 1995.
3. Purchases and Sales of Investments
For the six months ended May 31, 1996, purchases and sales/maturities of
investment securities were: Primary $4,160,043,444 and $4,214,441,000,
respectively; Government $2,726,282,736 and $2,743,411,553, respectively;
General $267,885,847 and $258,690,405, respectively; California $152,165,290 and
$160,378,629, respectively; and New York $118,616,482 and $109,000,000,
respectively.
19
<PAGE>
May 31, 1996
NOTES TO FINANCIAL STATEMENTS (unaudited) (continued)
4. Financial Instruments and Associated Risks
Each Portfolio invests in issues with a remaining maturity of thirteen
months or less and are rated high quality by a nationally recognized rating
organization or, if not rated, are judged by the Adviser to be of comparable
quality. Primary, in pursuing its policy of portfolio diversification, may have
industry concentrations in excess of 5%; at May 31, 1996, such concentrations
were Banking-35.5%, Sovereign-13.3%, Finance-11.5%, Automotive-8.8%,
Health/Hospital-7.8%, Brokerage-7.0%. Government's portfolio is concentrated in
issues of, or guaranteed by, the U.S. Government and/or its agencies and is
diversified with respect to its investments in repurchase agreements. General
maintains a diversified portfolio of short-term obligations issued by states,
territories and possessions of the United States and by the District of Columbia
and by their political subdivisions and duly constituted authorities. California
and New York maintain non-diversified portfolios of short-term obligations
issued by the States of California and New York, respectively, and their
political subdivisions. Issuers' abilities to meet their obligations may be
affected by economic and political developments in a specific state, region or
industry. Certain short-term debt obligations held by the Portfolios may be
entitled to the benefit of standby letters of credit or other guarantees of
banks or other financial institutions.
20
<PAGE>
FINANCIAL HIGHLIGHTS (For a share outstanding throughout each period)
<TABLE>
<CAPTION>
INCOME FROM DIVIDENDS
INVESTMENT OPERATIONS AND DISTRIBUTIONS
--------------------- -----------------------------------------------
Dividends to
Net Asset Net Shareholders Distributions Distributions
Value Net Realized Total from from Net to Shareholders to Shareholders
Beginning Investment Gain/(Loss) Investment Investment from from Net
of Period Income on Investments Operations Income Other Sources Realized Gains
Primary Portfolio
<S> <C> <C> <C> <C> <C> <C> <C>
Six months ended
May 31, 1996 (1) $1.00 $0.023 - $0.023 ($0.023) - -
Year ended Nov. 30, 1995 1.00 0.051 $0.000 (2) 0.051 (0.051) - ($0.000)(2)
Year ended Nov. 30, 1994 1.00 0.032 0.000 (2) 0.032 (0.032) ($0.000)(2) (0.000)(2)
Year ended Nov. 30, 1993 1.00 0.024 0.000 (2) 0.024 (0.024) (0.000)(2) (0.000)(2)
Year ended Nov. 30, 1992 1.00 0.033 0.000 (2) 0.033 (0.033) - (0.000)(2)
Year ended Nov. 30, 1991 1.00 0.057 (0.000)(2) 0.057 (0.057) - -
<CAPTION>
RATIOS TO
AVERAGE
NET ASSETS
------------------
<S> <C> <C> <C> <C> <C>
Six months ended
May 31, 1996 (1) $1.00 4.68%(4) $1,633.5 0.92%(3,4) 4.60%(3,4)
Year ended Nov. 30, 1995 1.00 5.19% 1,671.1 0.94% 5.07%
Year ended Nov. 30, 1994 1.00 3.26% 1,453.8 0.91% 3.21%
Year ended Nov. 30, 1993 1.00 2.44% 1,413.9 0.90% 2.41%
Year ended Nov. 30, 1992 1.00 3.38% 1,168.3 0.88% 3.34%
Year ended Nov. 30, 1991 1.00 5.89% 1,249.0 0.86% 5.74%
</TABLE>
(1) Unaudited.
(2) Less than $.0005 per share.
(3) Average net assets for the six months ended May 31, 1996 were
$1,699,795,425.
(4) Annualized.
<TABLE>
<CAPTION>
INCOME FROM DIVIDENDS
INVESTMENT OPERATIONS AND DISTRIBUTIONS
--------------------- -----------------------------------------------
Dividends to
Net Asset Net Shareholders Distributions Distributions
Value Net Realized Total from from Net to Shareholders to Shareholders
Beginning Investment Gain/(Loss) Investment Investment from from Net
of Period Income on Investments Operations Income Other Sources Realized Gains
Government Portfolio
<S> <C> <C> <C> <C> <C> <C> <C>
Six months ended
May 31, 1996 (1) $1.00 $0.022(3) ($0.000)(2) $0.022 ($0.022) - -
Year ended Nov. 30, 1995 1.00 0.049(3) 0.000 (2) 0.049 (0.049) - ($0.000)(2)
Year ended Nov. 30, 1994 1.00 0.031(3) 0.000 (2) 0.031 (0.031) ($0.000)(2) -
Year ended Nov. 30, 1993 1.00 0.022 - 0.022 (0.022) (0.000)(2) -
Year ended Nov. 30, 1992 1.00 0.032(3) 0.000 (2) 0.032 (0.032) - (0.000)(2)
Year ended Nov. 30, 1991 1.00 0.055(3) - 0.055 (0.055) - -
<CAPTION>
RATIOS TO
AVERAGE
NET ASSETS
------------------
<S> <C> <C> <C> <C> <C>
Six months ended
May 31, 1996 (1) $1.00 4.50%(5) $ 99.4 1.00%(3,4,5) 4.42%(3,4,5)
Year ended Nov. 30, 1995 1.00 5.02% 108.6 1.00%(3) 4.91%(3)
Year ended Nov. 30, 1994 1.00 3.12% 113.2 0.95%(3) 3.08%(3)
Year ended Nov. 30, 1993 1.00 2.26% 127.9 1.00% 2.24%
Year ended Nov. 30, 1992 1.00 3.24% 131.7 0.93%(3) 3.23%(3)
Year ended Nov. 30, 1991 1.00 5.69% 142.2 0.84%(3) 5.62%(3)
</TABLE>
(1) Unaudited.
(2) Less than $.0005 per share.
(3) During the periods noted above, the Adviser waived a portion of its fees.
Additionally, for the six months ended May 31, 1996, the Portfolio
benefited from an expense offset arrangement with its custodian bank. Had
such waivers and expense offsets not been in effect, the ratio of net
operating expenses would have been 1.03%, 1.02%, 0.97%, 0.94% and 0.92%,
respectively, and the ratio of net investment income would have been 4.39%,
4.89%, 3.06%, 3.22% and 5.54%, respectively.
(4) Average net assets for the six months ended May 31, 1996 were $114,528,628.
(5) Annualized.
- ----------
* Assumes reinvestment of all dividends and distributions.
21
<PAGE>
Financial Highlights (For a share outstanding throughout each period)
(continued)
<TABLE>
<CAPTION>
INCOME FROM DIVIDENDS AND
INVESTMENT OPERATIONS DISTRIBUTIONS
--------------------- ---------------------------
Dividends to
Net Asset Net Shareholders
Value Net Realized Total from from Net Capital
Beginning Investment Gain/(Loss) Investment Investment Contribution
of Period Income on Investments Operations Income by Adviser
General Municipal Portfolio
<S> <C> <C> <C> <C> <C> <C>
Six months ended May 31, 1996 (1) $1.00 $0.013(2) $0.000 (3) $0.013 ($0.013) --
Year ended November 30, 1995 1.00 0.031(2) (0.000)(3) 0.031 (0.031) --
Year ended November 30, 1994 1.00 0.020(2) 0.000 (3) 0.020 (0.020) --
Year ended November 30, 1993 1.00 0.017(2) (0.000)(3) 0.017 (0.017) --
Year ended November 30, 1992 1.00 0.026(2) (0.000)(3) 0.026 (0.026) --
Year ended November 30, 1991 1.00 0.042(2) 0.000 (3) 0.042 (0.042) --
<CAPTION>
RATIOS TO
AVERAGE
NET ASSETS
--------------------------
<S> <C> <C> <C> <C> <C>
Six months ended May 31, 1996 (1) $1.00 2.63%(5) $126.3 1.00%(2,4,5) 2.59%(2,4,5)
Year ended November 30, 1995 1.00 3.11% 116.0 0.93%(2) 3.07%(2)
Year ended November 30, 1994 1.00 2.04% 108.7 0.90%(2) 2.01%(2)
Year ended November 30, 1993 1.00 1.74% 109.7 0.98%(2) 1.73%(2)
Year ended November 30, 1992 1.00 2.66% 112.9 0.90%(2) 2.62%(2)
Year ended November 30, 1991 1.00 4.24% 100.1 0.88%(2) 4.20%(2)
</TABLE>
(1) Unaudited.
(2) During the periods noted above, the Adviser waived a portion of its fees.
Additionally, for the six months ended May 31, 1996, the Portfolio benefited
from an expense offset arrangement with its custodian bank. Had such waivers
and expense offsets not been in effect, the ratio of net operating expenses
would have been 1.02%, 1.02%, 1.01% , 1.01%, 1.00% and 0.98%, respectively,
and the ratio of net investment income would have been 2.57%, 2.98%, 1.90%,
1.70%, 2.52% and 4.10%, respectively.
(3) Less than $.0005 per share.
(4) Average net assets for the six months ended May 31, 1996 were $133,540,156.
(5) Annualized.
<TABLE>
<CAPTION>
INCOME FROM DIVIDENDS AND
INVESTMENT OPERATIONS DISTRIBUTIONS
--------------------- ---------------------------
Dividends to
Net Asset Net Shareholders
Value Net Realized Total from from Net Capital
Beginning Investment Gain/(Loss) Investment Investment Contribution
of Period Income on Investments Operations Income by Adviser
California Municipal Portfolio
<S> <C> <C> <C> <C> <C> <C>
Six months ended May 31, 1996 (1) $1.00 $0.012(2) ($0.000)(3) $0.012 ($0.012) --
Year ended November 30, 1995 1.00 0.031(2) (0.008) 0.023 (0.031) $0.008
Year ended November 30, 1994 1.00 0.020(2) 0.000(3) 0.020 (0.020) --
Year ended November 30, 1993 1.00 0.017(2) (0.000)(3) 0.017 (0.017) --
Year ended November 30, 1992 1.00 0.025(2) (0.000)(3) 0.025 (0.025) --
March 20, 1991 (5) to
November 30, 1991 1.00 0.026(2) (0.000)(3) 0.026 (0.026) --
<CAPTION>
RATIOS TO
AVERAGE
NET ASSETS
--------------------------
<S> <C> <C> <C> <C> <C>
Six months ended May 31, 1996 (1) $1.00 2.49%(6) $66.8 0.87%(2,4,6) 2.47%(2,4,6)
Year ended November 30, 1995 1.00 3.10% 75.9 0.82%(2) 3.05%(2)
Year ended November 30, 1994 1.00 1.99% 61.3 0.85%(2) 1.99%(2)
Year ended November 30, 1993 1.00 1.76% 62.3 0.85%(2) 1.75%(2)
Year ended November 30, 1992 1.00 2.57% 61.2 0.60%(2) 2.51%(2)
March 20, 1991 (5) to
November 30, 1991 1.00 4.24%(6) 45.4 0.54%(2,6) 3.75%(2,6)
</TABLE>
(1) Unaudited.
(2) During the periods noted above, the Adviser waived a portion or all of its
fees and assumed a portion of its operating expenses. Additionally, for the
six months ended May 31, 1996, the Portfolio benefited from an expense
offset arrangement with its custodian bank. Had such waivers, expense
offsets and assumptions not been in effect, the ratio of net operating
expenses would have been 0.96%, 0.95%, 0.97%, 0.98%, 1.02% and 1.08%,
respectively, and the ratio of net investment income would have been 2.38%,
2.92%, 1.87%, 1.62%, 2.09% and 3.21%, respectively.
(3) Less than $.0005 per share.
(4) Average net assets for the six months ended May 31, 1996 were $71,816,035.
(5) Commencement of operations.
(6) Annualized.
New York Municipal Portfolio
<TABLE>
<CAPTION>
INCOME FROM DIVIDENDS AND
INVESTMENT OPERATIONS DISTRIBUTIONS
--------------------- ---------------------------
Dividends to
Net Asset Net Shareholders
Value Net Realized Total from from Net Capital
Beginning Investment Gain/(Loss) Investment Investment Contribution
of Period Income on Investments Operations Income by Adviser
<S> <C> <C> <C> <C> <C> <C>
Six months ended May 31, 1996 (1) $1.00 $0.013(2) - $0.013 ($0.013) --
Year ended November 30, 1995 1.00 0.030(2) ($0.000)(3) 0.030 (0.030) --
Year ended November 30, 1994 1.00 0.019(2) 0.000 (3) 0.019 (0.019) --
Year ended November 30, 1993 1.00 0.016(2) (0.000)(3) 0.016 (0.016) --
Year ended November 30, 1992 1.00 0.025(2) (0.000)(3) 0.025 (0.025) --
April 10, 1991 (5) to
November 30, 1991 1.00 0.024(2) (0.000)(3) 0.024 (0.024) --
<CAPTION>
RATIOS TO
AVERAGE
NET ASSETS
---------------------------
<S> <C> <C> <C> <C> <C>
Six months ended May 31, 1996 (1) $1.00 2.55%(6) $61.7 0.96%(2,4,6) 2.51%(2,4,6)
Year ended November 30, 1995 1.00 3.07% 52.3 0.79%(2) 3.02%(2)
Year ended November 30, 1994 1.00 1.92% 48.0 0.82%(2) 1.90%(2)
Year ended November 30, 1993 1.00 1.66% 42.2 0.79%(2) 1.64%(2)
Year ended November 30, 1992 1.00 2.56% 32.9 0.74%(2) 2.43%(2)
April 10, 1991 (5) to
November 30, 1991 1.00 4.29%(6) 18.4 0.56%(2,6) 3.80%(2,6)
</TABLE>
(1) Unaudited.
(2) During the periods noted above, the Adviser waived a portion or all of its
fees and assumed a portion of its operating expenses. Additionally, for the
six months ended May 31, 1996, the Portfolio benefited from an expense
offset arrangement with its custodian bank. Had such waivers, expense
offsets and assumptions not been in effect, the ratio of net operating
expenses would have been 0.98%, 1.00%, 1.01%, 1.03%, 1.19% and 1.43%,
respectively, and the ratio of net investment income would have been 2.49%,
2.81%, 1.71%, 1.40%, 1.98% and 2.93%, respectively.
(3) Less than $.0005 per share.
(4) Average net assets for the six months ended May 31, 1996 were $61,113,886.
(5) Commencement of operations.
(6) Annualized.
- ----------
* Assumes reinvestment of all dividends.
22
<PAGE>
[LOGO] OCC CASH RESERVES
Directors and Officers
Joseph M. La Motta Director, President
Paul Y. Clinton Director
Thomas W. Courtney Director
Lacy B. Herrmann Director
George Loft Director
Everett Alcenat Vice President
Robert J. Bluestone Vice President
Bernard H. Garil Vice President
John C. Giusio, Jr. Vice President
Matthew Greenwald Vice President
Vikki Hanges Vice President
Susan A. Murphy Vice President
Sheldon Siegel Treasurer
Deborah Kaback Secretary
Richard L. Peteka Assistant Treasurer
Maria Camacho Assistant Secretary
Thomas E. Duggan Assistant Secretary
Investment Adviser
OpCap Advisors
One World Financial Center
New York, NY 10281
Distributor
OCC Distributors
Two World Financial Center
New York, NY 10080
Custodian, Transfer and Shareholder Servicing Agent
State Street Bank and Trust Company
P.O. Box 8505
Boston, MA 02266
Table of Contents
President's Letter................................... 1
Investment Review.................................... 2
Schedules of Investments............................. 4
Statements of Assets and Liabilities................. 14
Statements of Operations............................. 15
Statements of Changes in Net Assets.................. 16
Notes to Financial Statements........................ 18
Financial Highlights................................. 21
This report is authorized for distribution only to shareholders
and to others who have received a copy of the prospectus.
[LOGO] OCC CASH RESERVES
. Primary Portfolio
. Government Portfolio
. General Municipal Portfolio
. California Municipal Portfolio
. New York Municipal Portfolio
Semi-Annual Report
May 31, 1996
Managed by
OpCap Advisors
23
