<PAGE>
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
OCC CASH RESERVES
January 10, 1997
Dear Shareholder:
OCC Cash Reserves is pleased to send you this annual report for the fiscal year
ended November 30, 1996. Detailed information on the performance and holdings of
each of the Fund's five portfolios is presented in the Investment Review and
financial statements that follow.
As was the case in the first half of the year, investor sentiment towards the
market for fixed income securities continued to be marked by a high degree of
skepticism. The market continued to struggle with the conflict between low
inflation and the prospect of stronger economic growth. Market participants
carefully focused on every comment from the Federal Reserve seeking clues as to
whether the Fed would tighten or ease. Their swift reaction to these comments
often resulted in a very volatile market for long-term fixed income securities.
Although investors in money market funds, such as OCC Cash Reserves may have
seen the yield on their investment decline during this period, they have not
been exposed to the market volatility.
We at OCC Cash Reserves want to thank you for your continued support and we look
forward to serving your money market fund needs in 1997 and for many years in
the future.
Sincerely,
/s/Joseph M. La Motta
Joseph M. La Motta
President
<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.
Annual Review
During the fiscal year ended November 30, 1996, the daily dividends of the
Primary Portfolio averaged 4.60% on an annual basis or 4.69% compounded monthly.
At the fiscal year-end the Portfolio had a seven-day compounded yield of 4.94%,
down from 5.01% at the beginning of the year. The average maturity of the
Portfolio during the year ranged from a low of 43 days to a high of 69 days and
on November 30 was 64 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.
Annual Review
The Government Portfolio's daily dividend averaged 4.41% on an annual basis or
4.51% compounded monthly in the fiscal year ended November 30, 1996. On November
30 the seven-day compounded yield of the Portfolio was 4.47%, down from 4.88% a
year earlier. The average maturity of the Portfolio during the year ranged from
16 days to 63 days. On November 30, it was 52 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.
Annual Review
Daily dividends of the General Municipal Portfolio averaged 2.53% on an annual
basis and 2.56% compounded monthly during the fiscal year ended November 30. 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 4.24%. The seven-day compounded yield on November 30 was 2.71%
compared with the year earlier when it was 3.08%. Average maturity for the
Portfolio ranged from 27 days to 67 days and on November 30 was 55 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
interest in the foregoing.
Annual Review
For the year ended November 30, 1996, the daily dividend averaged 2.40% on an
annual basis and 2.42% 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 4.50%. Between the end of the last fiscal year and November
30, 1996, the seven-day compounded yield fell from 3.14% to 3.04%. The average
maturity of the securities in the Portfolio ranged from 25 days to 69 days and
was 54 days on November 30.
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.
Annual Review
In the year ended November 30, 1996, the daily dividends of the Portfolio
averaged 2.47% on an annual basis and 2.50% compounded monthly. This was
equivalent to an effective taxable yield of 4.67% 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 2.70% between the 1995 and 1996 fiscal year-ends. The
average maturity of the Portfolio ranged between 24 days and 69 days. On
November 30, it was 63 days.
================================================================================
Tax Information (unaudited)
================================================================================
We are required by Subchapter M of the Internal Revenue Code of 1986, as
amended, to advise you within 60 days of the Fund's fiscal year end (November
30, 1996) as to the Federal tax status of dividends and distributions received
by shareholders during such fiscal year. Accordingly, we are advising you that
per share dividends paid by the Primary and Government Portfolios amounting to
$0.046 and $0.044, respectively, are subject to Federal income tax.
Substantially all dividends paid by the General, California and New York
Municipal Portfolios during the fiscal year were Federally exempt interest
dividends, although each of those Portfolios did invest in securities which paid
interest subject to the Federal alternative minimum tax during its fiscal year.
The portion of dividends paid to shareholders subject to such tax amounted to
31.5%, 16.7% and 25.8%, for the General, California and New York Municipal
Portfolios, respectively.
Since each of the Portfolio's fiscal year is not the calendar year, you will be
advised on IRS Form 1099 DIV as to the Federal tax status of the dividends
received by you in calendar 1996. The amounts that will be reported will be the
amounts to use on your 1996 Federal income tax return and probably will differ
from the amounts which we must report for the Portfolio's fiscal year ended
November 30, 1996. Enclosed with the mailing of this annual report is additional
tax information, including a breakdown of the interest income derived by state
for the General Municipal Portfolio and a quarterly breakdown of the percentage
of income in the Government Portfolio qualifying for state tax pass-through
treatment. The breakdown of interest by state for the General Municipal
Portfolio may be of value in reducing a shareholder's state or local tax
liability, if any. Shareholders are advised to consult with their own tax
advisors as to the Federal, state and local tax status of the income received.
3
<PAGE>
November 30, 1996
================================================================================
Schedules of Investments
================================================================================
Primary Portfolio
- --------------------------------------------------------------------------------
Principal
Amount
(000) Value
- --------------------------------------------------------------------------------
U.S. Government Agencies--4.4%
Federal National Mortgage Association,
$45,000 5.24%-5.67%,
4/11/97-9/29/97............................... $ 44,992,033
15,000 5.37%, 12/3/96, VRDN*......................... 14,996,179
15,000 Student Loan Marketing Association,
5.18%-5.40%, 3/13/97.......................... 15,000,000
---------------
Total U.S. Government Agencies
(amortized cost -- $74,988,212)......................... $ 74,988,212
---------------
Bank Notes--.2%
$ 4,000 NationsBank NA,
5.37%, 2/10/97
(amortized cost -- $3,957,637)................ $ 3,957,637
---------------
Certificates of Deposit--17.8%
$35,000 BankAmerica NTSA,
5.50%-5.66%,
12/9/96-10/7/97............................... $ 35,000,000
45,000 Bank of Nova Scotia,
5.56%-5.83%,
1/21/97-3/10/97............................... 45,000,000
20,000 Beneficial Corp., VRDN*,
5.35%, 1/10/97................................ 20,000,000
55,000 Canadian Imperial Bank of
Commerce,
5.33%-5.415%,
12/30/96-1/8/97............................... 55,000,651
20,000 Deutsche Bank,
5.51%, 11/24/97............................... 19,990,589
10,000 Dresdner U.S. Finance Inc.,
5.60%, 7/7/97................................. 10,000,000
25,000 National Westminster Bank PLC,
5.53%, 12/10/96............................... 25,000,000
25,000 NationsBank NA,
5.35%, 2/10/97................................ 25,000,000
15,000 Royal Bank of Canada,
5.46%, 12/31/96............................... 15,000,122
55,000 Societe Generale Bank,
5.48%-5.70%,
12/9/96-5/19/97............................... 55,000,000
Total Certificates of Deposit ---------------
(amortized cost -- $304,991,362)......................... $ 304,991,362
---------------
Commercial Paper--74.5%
$35,000 Abbey National North America,
5.42%-5.49%,
12/4/96-12/26/96.............................. $ 34,933,779
$25,000 ABN-Amro North America
Finance Inc.,
5.43%-5.57%,
12/3/96-4/1/97................................ $ 24,723,143
46,730 American Express Credit Corp.,
5.25%-5.30%,
12/30/96-12/31/96............................. 46,527,359
30,000 American Home Products Corp.,
5.28%, 12/23/96............................... 29,903,200
25,000 Associates Corporation of North
America,
5.255%, 12/20/96.............................. 24,930,663
62,000 Bayerische Vereinsbank AG,
5.33%-5.52%,
2/3/97-4/10/97................................ 61,115,543
30,961 British Columbia (Province of),
5.28%-5.50%,
12/9/96-1/30/97............................... 30,714,448
20,000 Canadian Wheat Board,
5.33%-5.45%,
3/13/97-4/7/97................................ 19,657,553
48,000 Cheltenham & Gloucester
Building Society,
5.26%-5.34%,
12/11/96-5/12/97.............................. 47,500,290
76,955 Daimler Benz North America Corp.,
5.26%-5.33%,
12/4/96-1/21/97............................... 76,648,328
15,000 Deere (John) Capital Corp.,
5.41%, 3/24/97................................ 14,745,279
50,000 Dresdner U.S. Finance Inc.,
5.32%-5.41%,
12/2/96-1/27/97............................... 49,824,925
22,500 Eksportfinans A/S,
5.30%-5.60%,
12/18/96-3/18/97.............................. 22,276,646
25,000 Ford Credit Europe PLC,
5.31%, 2/3/97................................. 24,764,000
42,000 General Electric Capital Corp.,
5.35%-5.38%,
1/13/97-1/27/97............................... 41,667,767
22,000 General Electric Capital
Services Inc.,
5.27%, 4/14/97................................ 21,568,446
65,945 General Motors Acceptance Corp.,
5.32%-5.325%,
5/23/97-8/21/97............................... 63,586,143
15,000 Glaxo Holdings PLC,
5.41%, 1/2/97................................. 14,927,867
50,000 Household Finance Corp.
5.25%-5.35%,
12/12/96-12/23/96............................. 49,871,056
4
<PAGE>
- --------------------------------------------------------------------------------
Principal
Amount
(000) Value
- --------------------------------------------------------------------------------
Commercial Paper--74.5% (cont'd)
$ 26,890 IBM Credit Corp.,
5.25%-5.31%,
12/17/96-1/14/97............................. $ 26,798,617
70,000 Merrill Lynch & Co. Inc.,
5.34%-5.40%,
1/6/97-1/28/97............................... 69,539,100
55,000 Morgan (J.P.) & Co. Inc.,
5.37%-5.62%,
2/18/97-3/10/97.............................. 54,296,808
49,000 Morgan Stanley Group Inc.,
5.32%-5.48%,
12/5/96-2/4/97............................... 48,673,014
20,150 Oesterreichische Kontrollbank AG,
5.28%, 2/18/97............................... 19,916,529
10,000 Queensland Treasury Corp.,
5.42%, 12/12/96.............................. 9,983,439
26,803 Sherwood Medical Co.,
5.28%, 12/18/96.............................. 26,736,171
12,000 Societe Generale N.A. Inc.,
5.41%, 3/5/97................................ 11,830,487
15,000 Student Loan Corp.,
5.34%, 12/2/96............................... 14,997,775
62,275 Svenska Handelsbanken Inc.,
5.35%-5.52%,
12/6/96-4/16/97.............................. 61,742,408
64,000 Sweden (Kingdom of),
5.25%-5.42%,
12/16/96-6/27/97............................. 63,407,312
34,000 Swedish Export Credit Corp.,
5.31%-5.32%,
1/9/97-1/13/97............................... 33,798,997
20,000 The Queen in Right of Alberta,
5.50%, 12/5/96............................... 19,987,778
30,000 Toronto-Dominion Holdings
USA Inc.,
5.30%, 12/23/96.............................. 29,902,833
42,150 UBS Finance Inc.,
5.32%-5.90%,
12/2/96-12/3/96.............................. 42,141,492
42,600 U.S. Borax & Chemical Corp.,
5.30%-5.46%,
12/19/96-5/19/97............................. 42,182,454
Total Commercial Paper
(amortized cost--$1,275,821,649)........................ $1,275,821,649
--------------
Corporate Note--.9%
$ 15,000 CIT Group Holdings Inc., VRDN*,
5.33%, 11/20/97
(amortized cost--$14,990,107)................ $ 14,990,107
--------------
Repurchase Agreement--2.1%
$ 36,034 J.P. Morgan Securities Inc.,
dtd. 11/29/96, 5.62%, 12/2/96
(proceeds at maturity $36,050,876,
collateralized by $36,805,000 par,
$36,758,994 value, Federal Home
Loan Mortgage Corp., 12/5/96
(amortized cost -- $36,034,000).............. $ 36,034,000
Total Investments
(amortized cost--$1,710,782,967+)............... 99.9% $1,710,782,967
Other Assets in Excess
of Other Liabilities............................ 0.1 $ 1,797,794
----- --------------
Total Net Assets................................... 100.0% $1,712,580,761
====== ==============
- --------------------------------------------------------------------------------
Government Portfolio
- --------------------------------------------------------------------------------
U.S. Government Agencies--91.0%
$ 600 Federal Farm Credit Bank,
5.23%, 1/17/97............................... $ 595,903
44,040 Federal Home Loan Bank,
5.20%-5.70%,
12/2/96-7/24/97.............................. 43,652,141
28,712 Federal Home Loan Mortgage
Corporation,
5.16%-5.70%,
12/2/96-5/6/97............................... 28,534,962
Federal National Mortgage Association,
14,455 5.23%-5.37%,
12/9/96-6/11/97.............................. 14,278,507
5,000 5.37%, 12/3/96, VRDN*........................ 4,998,726
--------------
Total U.S. Government Agencies
(amortized cost--$92,060,239)............................ $ 92,060,239
Repurchase Agreement--8.9%
$ 8,966 J.P. Morgan Securities Inc.,
dtd. 11/29/96, 5.62%, 12/2/96
(proceeds at maturity $8,970,199,
collateralized by $9,230,000 par,
$9,149,238 value, Federal Home
Loan Mortgage Corp., 1/27/97)
(amortized cost--$8,966,000)................. $ 8,966,000
--------------
Total Investments
(amortized cost--$101,026,239+)................... 99.9% $ 101,026,239
Other Assets in Excess
of Other Liabilities.............................. 0.1 109,265
----- --------------
Total Net Assets................................... 100.0% $ 101,135,504
===== ==============
5
<PAGE>
November 30, 1996
================================================================================
Schedules of Investments (continued)
================================================================================
- --------------------------------------------------------------------------------
General Municipal Portfolio
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Principal
Amount
(000) Value
- --------------------------------------------------------------------------------
Alabama--1.6%
$ 2,000 Phenix Cnty. IDB, EIR,
Mead Coated Brd. Proj.,
(LC; ABN Amro Bank, PA)
3.50%, 1/22/97............................... $ 2,000,000
--------------
Alaska--9.5%
915 Alaska Indl. Dev. Auth.,
8.75%, 4/1/97 (A)............................ 948,333
3,600 Alaska St. HF Corp.,
Ser. A, VRDN*,
3.55%, 12/4/96............................... 3,600,000
250 Anchorage Elec. Util. Rev.,
(Insd.; MBIA),
4.50%, 12/1/96............................... 250,000
Valdez Marine Term. Rev.,
Arco Transn. Proj.,
4,800 Ser. A, 3.70%, 1/6/97.......................... 4,800,000
2,000 Ser. B, VRDN*,
3.70%, 12/4/96............................... 2,000,000
--------------
11,598,333
--------------
Arizona--5.6%
1,000 Arizona Edl. Ln. Mktg. Corp.,
ELR, Ser. A, VRDN*
(LC; Dresdner Bank AG),
3.60%, 12/4/96............................... 1,000,000
2,500 Cochise Cnty. PCR, SWDR,
Arizona Elec. Pwr. Coop. Inc. Proj.,.........
3.70%, 3/1/97................................ 2,500,000
2,100 Maricopa Cnty. PCC, PCR,
So. California Edison,
Palo Verdi Proj.,
3.55%, 12/12/96.............................. 2,100,000
1,200 Mesa Muni. Dev. Corp.,
Ser. A,
3.50%, 12/2/96............................... 1,200,000
--------------
6,800,000
--------------
California--4.9%
1,500 California Sch. Cash Reserve,
Prog. Auth., Ser. A,
4.75%, 7/2/97................................ 1,507,838
1,000 California St. RAN's,
dtd. 8/6/96,
4.50%, 6/30/97............................... 1,002,946
1,000 Contra Costa Cnty. TRAN's,
dtd. 7/1/96,
4.50%, 7/3/97................................ 1,004,233
1,000 Fresno TRAN's,
dtd. 7/2/96,
4.50%, 6/30/97............................... 1,003,053
1,000 Los Angeles Cnty. TRAN's,
dtd. 7/1/96,
Ser. A,
(LC; Credit Suisse, NY and
Morgan Guaranty, N.Y.),
4.50%, 6/30/97............................... 1,004,063
500 Sonoma Valley Sch. Dist. TRAN's
dtd. 7/3/96,
4.50%, 7/3/97................................ 501,692
--------------
6,023,825
--------------
Delaware--2.5%
3,100 Delaware St. EDAR, Gas Facs.,
Delmarva Pwr. & Lt., VRDN*,
4.00%, 12/2/96............................... 3,100,000
--------------
Florida--1.1%
1,350 Putnam Cnty. Dev. Auth., PCR,
Seminole Elec. Co. Proj.,
Ser. H-1, VRDN*,
3.55%, 12/4/96................................ 1,350,000
--------------
Hawaii--3.9%
500 Hawaii St. Arpts. Sys. Rev.
6.00%, 7/1/97................................ 505,364
2,210 Hawaii St. Dept. 1988, Ser. C,
3.45%, 1/29/97............................... 2,210,000
1,000 Hawaii St. GO,
Ser. BW (LC; FGIC),
5.15%, 3/1/97................................ 1,003,399
1,000 Secondary Mkt. Svcs. Corp., SLR,
Ser. II, VRDN*
(LC; Nat'l. Westminster Bank PLC),
3.60%, 12/4/96............................... 1,000,000
--------------
4,718,763
--------------
Illinois--9.7%
5,300 Chicago O'Hare Int'l. Arpt.,
Ser. B, VRDN*
(LC; Societe Generale Bank),
3.60%, 12/4/96............................... 5,300,000
Illinois Hlth. FAR,
Hosp. Sisters Svc. Proj., Ser. E,
VRDN* (Insd.; MBIA),
1,700 3.55%, 12/4/96............................... 1,700,000
1,510 3.55%, 1/30/97............................... 1,510,000
2,800 Parkside Dev. Corp. Proj.,
VRDN* (LC; First NatOl. Bank of
Chicago),
3.55%, 12/4/96............................... 2,800,000
6
<PAGE>
- --------------------------------------------------------------------------------
Principal
Amount
(000) Value
- --------------------------------------------------------------------------------
Illinois--9.7% (cont'd)
$ 500 Illinois St., GO,
5.25%, 10/1/97............................... $ 504,968
------------
11,814,968
------------
Indiana--2.7%
500 Indianapolis Ind. Loc. Pub. Impt.,
Bond Bank, Ser.D,
4.25%, 1/9/97................................ 500,235
2,745 Sullivan PCR,
Rural Util./Hoosier Elec. Co.,
Ser. 85L-4,
3.50%, 1/24/97............................... 2,745,000
------------
3,245,235
------------
Kentucky--1.8%
200 Boone Cnty. PCR,
Cincinnati Gas & Elec. Co.
Proj., Ser. A, VRDN*
(LC; Union Bank of Switzerland),
3.65%, 12/2/96............................... 200,000
2,000 Kentucky HEL, Student Loan
Corp., SLR, Ser. E, VRDN*
3.60%, 12/4/96............................... 2,000,000
------------
2,200,000
------------
Maryland--2.0%
1,000 Anne Arundel Cnty. EDR,
Baltimore Gas & Elec. Co. Proj.,
3.60%, 12/11/96.............................. 1,000,000
1,000 Maryland St., Dept. of Trans.,
3.625%, 6/15/97.............................. 999,492
500 Washington Subn. San. Dist.,
Gen. Constr.,
4.50%, 6/1/97................................ 501,205
------------
2,500,697
------------
Mississippi--1.1%
1,300 Jackson Cnty., Port. Fac. Rev.
Chevron USA Inc. Proj., VRDN*
4.15%, 12/2/96............................... 1,300,000
------------
Missouri--.5%
600 Missouri EIERA, PCR,
Union Elec. Co. Proj.,
Ser. A (LC; Swiss Bank Corp.),
3.65%, 6/1/97................................ 600,000
------------
Nebraska--3.0%
Nebraska HEL Prog.,
Student Ln. Prog.
2,100 Ser. A, VRDN*
(LC; SLMA),
3.60%, 12/4/96............................... 2,100,000
1,600 Ser. C, VRDN*
(LC; SLMA),
3.60%, 12/4/96............................... 1,600,000
------------
3,700,000
------------
Nevada--.4%
500 Clark Cnty. AIR,
Sub. Lien, Ser. A-2, VRDN*
(LC; Toronto-Dominion Bank),
3.60%, 12/4/96............................... 500,000
------------
New Hampshire--.9%
1,100 New Hampshire St. BFA, PCR,
Pub. Svc. Co. of New Hampshire
Proj., Ser. D, VRDN*
(LC; Barclays Bank PLC),
3.75%, 12/4/96............................... 1,100,000
------------
New Jersey--1.6%
1,000 Essex Cnty. BAN's,
Ser. A, dtd. 9/18/96,
4.50%, 9/17/97............................... 1,003,773
1,000 Ocean Cnty. BAN's
dtd. 6/20/96
4.25%, 6/20/97............................... 1,002,115
------------
2,005,888
------------
New York--13.6%
328 East Hampton Town BAN's,
Ser. C, dtd. 8/22/96,
4.50%, 8/22/97............................... 329,020
400 Gloversville Sch. Dist. GO,
(CS; FSA)
4.90%, 6/15/97............................... 402,516
1,000 New York City Mun. Asst. Corp.,
Ser. E
4.00%, 7/1/97................................ 1,001,566
New York St. DAR,
500 City Univ. Sys. Cons., Ser. A,
8.125%, 7/1/97 (A)........................... 521,843
200 St. Francis Ctr. at the Knolls,
VRDN* (LC; Banque Nationale
de Paribas),
4.00%, 12/2/96............................... 200,000
1,000 New York St. ERDA, PCR,
Rochester Gas & Elec. Corp. Proj.,
(LC; Credit Suisse),
3.60%, 11/15/97.............................. 1,000,000
New York St. JDA, St. Gtd.,
200 Ser. A1-A13, VRDN*,
4.05%, 12/2/96............................... 200,000
4,300 Ser. A1-A42, VRDN*,
4.05%, 12/2/96............................... 4,300,000
7
<PAGE>
November 30, 1996
================================================================================
Schedules of Investments (continued)
================================================================================
- --------------------------------------------------------------------------------
General Municipal Portfolio (cont'd)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Principal
Amount
(000) Value
- --------------------------------------------------------------------------------
New York--13.6% (cont'd)
$ 2,500 Ser. B1-B21, VRDN*,
4.05%, 12/2/96............................... $ 2,500,000
2,000 New York St. PAR,
3.70%, 3/1/97***............................. 2,000,000
Niagara Cnty. NY Solid Waste.,
Ser. C,
1,600 3.85%, 12/3/96............................... 1,600,000
2,100 3.70%, 1/9/97................................ 2,100,000
500 Oceanside Sch. Dist. TAN's,
dtd. 7/10/96,
4.375%, 6/27/97.............................. 501,303
-------------
16,656,248
-------------
North Carolina--1.4%
1,700 Wake Cnty. Indl. Facs. & PCFA
Carolina Power & Lt. Co. Proj.,
VRDN* (LC; Sumitomo Bank),
4.00%, 12/2/96............................... 1,700,000
-------------
Ohio--2.0%
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),
3.65%, 12/4/96............................... 1,000,000
-------------
2,500,000
-------------
Pennsylvania--5.5%
1,700 Emmaus GAR,
Ser. C-8, VRDN*
(LC; Midland Bank PLC),
3.70%, 12/4/96............................... 1,700,000
200 Pennsylvania St. GO, Ser. A,
6.50%, 6/1/97................................ 202,419
2,000 Pennsylvania St. HEA, SLR,
Ser. A, VRDN*
(LC; SLMA),
3.60%, 12/4/96............................... 2,000,000
350 Philadelphia, GO,
4.00%, 5/15/97............................... 350,071
500 Philadelphia Sch. Dist. TRAN's,
dtd. 7/17/96,
4.50%, 6/30/97............................... 501,392
2,000 Venango IDA, RRR, Ser. '90B,
3.55%, 1/23/97............................... 2,000,000
-------------
6,753,882
-------------
Rhode Island--.2%
$ 225 North Providence, GO,
5.75%, 7/1/97................................ $ 227,218
-------------
South Carolina--.8%
970 York Cnty. PCR,
Saluda River Proj., Ser. '84E,
3.65%, 2/15/97............................... 970,000
-------------
Tennessee--2.7%
2,300 Hamilton Cnty. IDR,
Seaboard Feeds Inc. Proj.,
VRDN*
3.75%, 12/5/96............................... 2,300,000
1,000 Metropolitan Nashville Arpt.,
VRDN* (Insd.; FGIC),
3.50%, 12/4/96............................... 1,000,000
-------------
3,300,000
-------------
Texas--12.1%
1,000 Brazos HEA,
Ser. B-1, VRDN*
(CS; SLMA),
3.55%, 12/4/96............................... 1,000,000
2,300 Brazos River Auth., PCR,
Texas Utils. Elec. Co. Proj., Ser. A,
(LC; Canadian Imperial Bank),
3.55%, 12/10/96.............................. 2,300,000
2,200 Brazos River Harbor Navigation,
Dist. of Brazoria Cnty.,
3.55%, 1/28/97............................... 2,200,000
3,000 Dallas Area TRAN's,
dtd. 8/8/95, Ser. A,
3.35%, 12/5/96............................... 3,000,000
1,000 Gulf Coast IDA, Marine Term. Rev.,
Amoco Oil Co. Proj.,
3.60%, 12/1/96............................... 1,000,000
2,000 Gulf Coast WDA, PCR,
Exxon Proj.,
3.55%, 12/9/96............................... 2,000,000
1,400 Lower CO. River Auth. Tex. Rev.,
Jr. Lien, Ser. 3rd Suppl.,
3.50%, 12/4/96............................... 1,400,000
240 North Cent., HFDCR,
Presbyterian Healthcare, Ser. A,
4.00%, 6/1/97................................ 240,000
620 Texas HEA, EEIR,
Ser. B, VRDN*
(Insd.; FGIC),
3.50%, 12/4/96............................... 620,000
1,000 Texas St. TRAN's,
dtd. 8/30/96,
4.75%, 8/29/97............................... 1,006,068
-------------
14,766,068
-------------
8
<PAGE>
- --------------------------------------------------------------------------------
Principal
Amount
(000) Value
- --------------------------------------------------------------------------------
Utah--2.5%
$ 1,000 Emery Cnty. PCR,
Pacificorp Projs., VRDN*
4.15%, 12/2/96................................. $ 1,000,000
2,000 Utah St. Brd. Regents SLR,
Ser. L, VRDN*
(Insd.; AMBAC),
3.60%, 12/4/96................................. 2,000,000
---------------
3,000,000
---------------
Washington--.2%
250 Washington St. GO,
Ser. R-'92C,
4.90%, 9/1/97.................................. 251,816
---------------
West Virginia--.8%
1,000 West Virginia Pub. Auth. Rev.,
Morgantown Assoc. Proj.,
(LC; Swiss Bank),
3.55%, 2/3/97.................................. 1,000,000
---------------
Wisconsin--3.6%
1,000 Racine Sch. Dist. TRAN's
dtd. 8/26/96,
4.15%, 8/22/97................................. 1,001,909
3,400 Wisconsin HFFAR,
Hosp. Sisters Oblig.,
Ser. G, VRDN* (Insd.; MBIA),
3.55%, 12/4/96................................. 3,400,000
---------------
4,401,909
---------------
Total Investments
(amortized cost--$120,084,850+)................... 98.2% $ 120,084,850
Other Assets in Excess
of Other Liabilities.............................. 1.8 2,196,942
----- ---------------
Total Net Assets.................................... 100.0% $ 122,281,792
===== ===============
- --------------------------------------------------------------------------------
California Municipal Portfolio
- --------------------------------------------------------------------------------
California--92.1%
$ 2,000 Anaheim Ctfs. Partn.,
1993 Ref. Projs.,
VRDN* (LC; ABN-Amro Bank),
3.40%, 12/4/96................................. $ 2,000,000
1,000 California Cmnty. College FA
TRAN's, Ser. A,
dtd. 7/3/96,
4.75%, 7/2/97.................................. 1,005,056
500 California HF Agy. Rev.,
Home Mtg. Prog., Ser. D,
3.55%, 4/1/97.................................. 500,000
2,000 California HFF,
Kaiser Permanente Proj.,
Ser. A, VRDN*,
3.45%, 12/4/96................................. 2,000,000
2,000 California HFFAR, Memorial
Hlth. Svcs. Proj., VRDN*,
3.45%, 12/4/96................................. 2,000,000
1,000 California PCFA,
Pacific Gas & Elec. Co. Proj.,
Ser. D, (LC; Union Bank of
Switzerland),
3.25%, 12/3/96................................. 1,000,000
2,000 California PCFA, PCR,
Homestake Mining Proj., Ser. '84A,
VRDN* (LC; Bank of Nova Scotia),
3.45%, 12/4/96................................. 2,000,000
2,000 California PCFA, PCR, RRR,
Wadham Energy Proj., Ser. C,
VRDN* (LC; Banque Nationale
de Paribas),
3.60%, 12/4/96................................. 2,000,000
California PCFA, RRR,
1,300 Burney Forest Prods., Ser. A,
VRDN* (LC; Fleet Bank),
4.00%, 12/2/96................................. 1,300,000
1,000 Delano Proj.,
VRDN* (LC; Algemene Bank,
Netherlands),
4.05%, 12/2/96................................. 1,000,000
900 Ultrapower Malaga Corp. Proj.,
VRDN* (LC; Bank of America),
Ser. B, 4.10%, 12/2/96......................... 900,000
Ultrapower Rocklin Proj.,
VRDN* (LC; Security Pacific
National Bank),
1,000 Ser. A, 4.10%, 12/2/96......................... 1,000,000
400 Ser. B, 4.10%, 12/2/96......................... 400,000
300 California PCFA, SWDR,
Shell Oil Co. Martinez Proj.,
Ser. B, VRDN*,
4.20%, 12/2/96................................. 300,000
California SCD Corp. Rev.,
Ind'l. Dev.,
395 Florestone Prod. Proj.,
VRDN* (LC; California St. Tchrs.
Ret. Fd.),
3.55%, 12/4/96................................. 395,000
1,700 South Bay Circuits Proj.,
VRDN* (LC; California St. Tchrs.
Ret. Fd.),
3.55%, 12/4/96................................. 1,700,000
9
<PAGE>
November 30, 1996
===============================================================================
Schedules of Investments (continued)
===============================================================================
- -------------------------------------------------------------------------------
California Municipal Portfolio (cont'd)
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
Principal
Amount
(000) Value
- -------------------------------------------------------------------------------
$ 1,500 California Sch. Cash Reserve,
Prog. Auth., Ser. A,
4.75%, 7/2/97............................... $1,507,838
1,306 California St. DWR's,
3.35%, 12/19/96............................. 1,306,000
1,000 California St. RAN's, Ser. A,
dtd. 8/6/96,
4.50%, 6/30/97.............................. 1,003,278
1,000 Contra Costa Cnty. TRAN's,
dtd. 7/1/96,
4.50%, 7/3/97............................... 1,004,233
2,000 Contra Costa TA, STR,
Ser. A (Insd.; FGIC),
5.00%, 3/1/97............................... 2,007,096
1,500 Irvine Ranch WD, Ser. B,
VRDN* (LC; Landesbank Hessen),
3.95%, 12/2/96.............................. 1,500,000
1,600 Los Angeles Cnty. MTA, STR, Ser. A,
(LC; Morgan Guaranty Trust Co. Inc.,
Union Bank of Switzerland and
Credit Suisse),
3.30%, 12/13/96............................. 1,600,000
1,000 Los Angeles Dept. of Wtr. & Power,
Electric Plant Short Term Rev.,
3.35%, 12/12/96............................. 1,000,000
1,000 Metropolitan WD, Ser. A,
3.40%, 12/12/96............................. 1,000,000
1,000 Monterey Cnty. FAR,
Reclamation & Dist. Proj., VRDN*,
(LC; Dai-Ichi Kangyo Bank),
3.55%, 12/5/96.............................. 1,000,000
1,000 Sacramento MUD, Ser. I,
(LC; Bayerische Landensbank
Girozentrale),
3.25%, 12/4/96.............................. 1,000,000
500 San Luis Obispo Cnty. Cmnty.
College Dist. TRAN's,
dtd. 7/2/96,
4.50%, 6/30/97.............................. 501,668
1,000 San Luis Obispo Cnty. Office of
Education TRAN's,
dtd. 10/10/96,
4.50%, 10/9/97.............................. 1,005,674
1,200 Santa Clara Cnty. FA, Lease Rev.,
VMC Fac. Replacement Proj., Ser.B,
VRDN* (LC; Union Bank of
Switzerland),
3.50%, 12/4/96.............................. 1,200,000
500 Southern California Edison Co.,
3.45%, 2/12/97.............................. 500,000
State of California GO,
1,500 3.30%, 12/2/96.............................. 1,500,000
2,000 3.30%, 12/9/96.............................. 2,000,000
1,000 3.40%, 1/30/97.............................. 1,000,000
2,000 3.45%, 1/23/97.............................. 2,000,000
1,000 Sutter Cnty. Office of Education
TRAN's, dtd. 10/22/96,
4.50%, 10/22/97............................. 1,006,002
4,000 University of California,
Regents, Ser. A,
3.35%, 12/5/96.............................. 4,000,000
1,000 Ventura Cnty. TRAN's,
dtd. 7/2/96,
4.75%, 7/2/97............................... 1,005,054
-----------
49,146,899
-----------
Puerto Rico--5.6%
Puerto Rico Gov't. Dev. Bank,
1,000 3.45%, 2/3/97............................... 1,000,000
2,000 3.55%, 2/4/97............................... 2,000,000
-----------
3,000,000
-----------
Total Investments
(amortized cost--$52,146,899+).............. 97.70% $52,146,899
Other Assets in Excess
of Other Liabilities........................ 2.3 1,213,758
------ -----------
Total Net Assets.............................. 100.00% $53,360,657
====== ===========
- -------------------------------------------------------------------------------
New York Municipal Portfolio
- -------------------------------------------------------------------------------
New York--96.2%
$ 1,000 Babylon, IDA, RRR,
VRDN*, dtd. 11/27/96
3.95%, 12/2/96.............................. $ 1,000,000
1,000 Broome Cnty. BAN's,
dtd. 4/18/96,
4.10%, 4/18/97.............................. 1,001,531
300 Broome Cnty. Ctfs., Partn.,
Pub. Safety Fac.,
(Insd.; MBIA),
3.75%, 4/1/97............................... 299,947
500 Elmira City, BAN'S
dtd. 7/11/96
4.375%, 7/10/97............................. 501,530
1,000 Gloversville Sch. Dist. GO,
(CS.; FSA)
4.90%, 6/15/97.............................. 1,006,289
Manhasset Sch. Dist. GO,
1,000 4.25%, 6/26/97.............................. 1,002,733
500 7.25%, 1/1/97............................... 501,482
10
<PAGE>
- --------------------------------------------------------------------------------
Principal
Amount
(000) Value
- --------------------------------------------------------------------------------
$ 415 Montgomery Cnty. GO,
(Insd.; AMBAC)
4.50%, 5/1/97....................................... $ 415,827
325 New York City GO,
Ser. A,
8.75%, 11/1/97 (A).................................. 344,362
300 New York City GO, VRDN*
Ser. B-5,
4.05%, 11/1/97...................................... 300,000
New York City, GO,
1,000 Sub. Ser. H-6
3.40%, 2/6/97....................................... 1,000,000
2,000 Sub. Ser. J-2
3.60%, 1/16/97...................................... 2,000,000
900 New York City Housing Dev. Corp
Residential East 17th St., Ser. A,
VRDN*
4.15%, 1/2/97....................................... 900,000
500 New York City IDA, CFR,
Childrens Oncology Soc. Proj.,
VRDN*
(LC; Barclays Bank PLC)
3.40%, 12/4/96...................................... 500,000
New York City IDA, IDR,
1,000 JFK Field Hotel Assoc. Proj.,
VRDN* (LC; Banque Indosuez),
3.50%, 12/4/96...................................... 1,000,000
1,000 La Guardia Arpt. Assoc. Proj.,
VRDN* (LC; Banque Indosuez),
3.50%, 12/4/96...................................... 1,000,000
New York City Mun. Asst. Corp.,
1,000 Ser. E, 4.00%, 7/1/97............................... 1,001,566
1,000 Ser. 68, 6.90%, 7/1/97.............................. 1,017,529
New York City MWFA
1,000 Series 3, 3.40%, 12/5/96............................ 1,000,000
2,000 Series 4, 3.45%, 12/12/96........................... 2,000,000
New York City Trust CRR,
2,000 Carnegie Hall Proj.,VRDN*
(LC; Dai-Ichi Kangyo Bank),
3.40%, 12/4/96...................................... 2,000,000
1,500 Museum of Broadcasting Proj.,
VRDN* (LC; Sumitomo Bank),
3.70%, 12/4/96...................................... 1,500,000
1,000 New York City, TAN'S
Ser. A, dtd. 8/1/96
4.50%, 2/12/97...................................... 1,001,516
New York DAR,
500 City Univ. Sys. Cons., Ser. A,
8.125%, 7/1/97 (A).................................. 521,843
2,115 Metropolitan Museum of Art Proj.,
Ser. B, VRDN* (Insd.; MBIA),
3.35%, 12/4/96...................................... 2,115,000
505 Miriam Osborn Mem. Home Proj.,
Ser. A, VRDN* (LC; Banque
Nationale de Paribas),
3.55%, 12/4/96...................................... 505,000
1,000 Ser. 1996
3.50%, 1/23/97...................................... 1,000,000
500 Sloan Kettering Mem. Hosp. Proj.,
Ser. C, (LC; Chemical Bank),
3.65%, 1/6/97....................................... 500,000
New York St. EFC, SWDR,
Gen. Elec. Co. Proj., Ser. A,
2,000 3.35%, 12/3/96...................................... 2,000,000
1,600 3.40%, 12/4/96...................................... 1,600,000
1,000 3.35%, 12/5/96...................................... 1,000,000
1,400 New York St. General Electric
3.50%, 1/28/97...................................... 1,400,000
New York St. ERDA, PCR,
2,000 New York St. Elec. & Gas Co. Proj.,
Ser. B,
3.85%, 10/15/97***.................................. 2,000,000
1,000 Niagara Mohawk Pwr. Co. Proj
Ser. A,
4.25%, 6/30/97...................................... 1,000,000
Rochester Gas & Elec. Co. Proj.,
VRDN* (LC; Bank of New York)
1,500 3.40%, 12/2/96...................................... 1,500,000
1,000 3.60%, 11/15/97***.................................. 1,000,000
New York St. JDA, St. Gtd.,
VRDN*
750 Ser. A, 4.05%, 12/2/96.............................. 750,000
845 Ser. B, 4.05%, 12/2/96.............................. 845,000
385 Special Purpose,
Ser. A, 4.05%, 12/2/96.............................. 385,000
3,000 New York St. LGAC,
Ser. E, VRDN* (LC; Canadian
Imperial Bank),
3.70%, 12/4/96...................................... 3,000,000
2,000 New York St. PAR,
3.70%, 3/1/97***.................................... 2,000,000
1,000 New York St., BAN'S
Ser. S, dtd. 11/27/96
3.55%, 2/5/97....................................... 1,000,000
558 Niagara Cnty. IDA, IDR,
Pyron Corp. Proj., VRDN*
(LC; Chemical Bank),
3.55%, 12/4/96...................................... 558,000
1,500 Niagara Cnty. IDA, SWDR
Ser. C,
3.70%, 1/9/97....................................... 1,500,000
500 Oceanside Sch. Dist. TAN'S,
dtd. 7/10/96,
4.375%, 6/27/97..................................... 501,303
11
<PAGE>
November 30, 1996
================================================================================
Schedules of Investments (continued)
================================================================================
- --------------------------------------------------------------------------------
New York Munipal Portfolio (cont'd)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Principal
Amount
(000) Value
- --------------------------------------------------------------------------------
Port Auth. of New York & New
Jersey, Ser. A,
$ 1,000 3.50%, 1/29/97.................................... $ 1,000,000
2,500 3.55%, 12/2/96.................................... 2,500,000
260 St. Lawrence Cnty. IDA, CFR,
INSD-St. Lawrence Univ. Proj.,
Ser. A,
4.25%, 7/1/97..................................... 260,733
1,000 St. Lawrence Cnty. IDA, EIR,
Reynolds Metals Co. Proj., VRDN*
(LC; Royal Bank Of Canada),
3.40%, 12/4/96.................................... 1,000,000
500 Scarsdale Sch. Dist., TAN'S
dtd. 7/16/96,
4.25%, 6/26/97.................................... 500,927
1,000 Student Loan Corp.,
Ser. '89A, 3.40%, 12/4/96......................... 1,000,000
1,000 Suffolk Cnty. IDA, IDR,
Nissequogue Cogen Ptnrs. Proj.,
VRDN* (LC; Toronto-Dominion
Bank), 3.50%, 12/4/96............................. 1,000,000
1,000 Suffolk Cnty. Wtr. Auth., BAN's,
VRDN*, dtd. 12/21/94,
3.45%, 12/4/96.................................... 1,000,000
450 Wallkill IDA, PCR,
Reynolds Metals Co. Proj., VRDN*
(LC; Dresdner Bank A.G.),
3.35%, 12/4/96.................................... 450,000
------------
Total Investments
(amortized cost--$57,687,118+)......................... 96.2% $ 57,687,118
Other Assets in Excess
of Other Liabilities................................... 3.8 2,309,004
----- ------------
Total Net Assets......................................... 100.0% $ 59,996,122
===== ============
- ---------
+ Federal income tax basis of portfolio securities is the same as for
financial reporting purposes.
* 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.
(A) Date shown is the pre-refunding date. Collateralized by U.S. Government
securities and cash which are held in escrow and are used to pay
principal and interest on the municipal issue and to retire the bonds in
full at the earliest refunding date.
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>
November 30, 1996
================================================================================
Statements of Assets and Liabilities
================================================================================
<TABLE>
<CAPTION>
--------- ---------- --------- ---------- ---------
Primary Government General California New York
Portfolio Portfolio Municipal Municipal Municipal
Portfolio Portfolio Portfolio
--------- ---------- --------- ---------- ---------
Assets
<S> <C> <C> <C> <C> <C>
Investments, at value
(amortized cost -
$1,710,782,967, $101,026,239,
$120,084,850, $52,146,899 and
$57,687,118, respectively)....... $1,710,782,967 $101,026,239 $120,084,850 $52,146,899 $57,687,118
Cash............................... 240,211 95,127 5,459 11,522 98,707
Receivable for investments sold.... - - 1,500,000 1,000,000 1,000,000
Receivable for fund shares sold.... 345,427 922 - - 931,262
Receivable from Adviser............ - - - 819 -
Interest receivable................ 4,197,991 170,380 838,178 273,372 373,686
Prepaid expenses and other assets.. 102,843 12,840 10,011 4,022 3,050
-------------- ------------ ------------ ----------- -----------
Total Assets....................... 1,715,669,439 101,305,508 122,438,498 53,436,634 60,093,823
-------------- ------------ ------------ ----------- -----------
Liabilities
Payable for fund shares redeemed... 9,709 - 6,461 - 14,246
Investment advisory fee payable.... 76,737 - - - 2,423
Distribution fee payable........... 46,598 2,770 3,337 1,463 1,622
Shareholder services fee payable... 82,184 4,192 5,849 2,536 2,638
Administrative services fee
payable.......................... 9,320 554 668 293 324
Dividends payable.................. 2,092,702 112,620 81,170 39,614 39,957
Other payables and accrued
expenses......................... 771,428 49,868 59,221 32,071 36,491
-------------- ------------ ------------ ----------- -----------
Total Liabilities.................. 3,088,678 170,004 156,706 75,977 97,701
-------------- ------------ ------------ ----------- -----------
Total Net Assets................... $1,712,580,761 $101,135,504 $122,281,792 $53,360,657 $59,996,122
============== ============ ============ =========== ===========
Composition of Net Assets
Par value ($.0001 per share,
10 billion shares authorized
for each portfolio).............. $ 171,262 $ 10,116 $ 12,237 $ 5,339 $ 6,002
Paid-in-capital in excess of par... 1,712,409,587 101,125,526 122,360,293 53,386,172 60,013,921
Accumulated net realized
loss on investments.............. (88) (138) (90,738) (30,854) (23,801)
-------------- ------------ ------------ ----------- -----------
Total Net Assets................... $1,712,580,761 $101,135,504 $122,281,792 $53,360,657 $59,996,122
============== ============ ============ =========== ===========
Fund shares outstanding............ 1,712,620,019 101,157,835 122,373,195 53,391,512 60,019,923
-------------- ------------ ------------ ----------- -----------
Net asset value per share.......... $1.00 $1.00 $1.00 $1.00 $1.00
============== =========== =========== =========== ==========
</TABLE>
See accompanying notes to financial statements.
14
<PAGE>
Year ended November 30, 1996
================================================================================
Statements of Operations
================================================================================
<TABLE>
<CAPTION>
--------- ---------- --------- ---------- ---------
Primary Government General California New York
Portfolio Portfolio Municipal Municipal Municipal
Portfolio Portfolio Portfolio
--------- ---------- --------- ---------- ---------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Interest............................ $93,426,661 $ 5,675,674 $4,588,062 $2,024,273 $2,146,269
----------- ----------- ---------- ---------- ----------
OPERATING EXPENSES
Investment advisory fee (note 2a)... 6,981,092 520,106 638,004 309,904 313,061
Distribution fee (note 2b).......... 4,238,182 262,097 326,669 154,952 156,531
Transfer and dividend
disbursement agent fees........... 2,330,976 78,649 79,161 22,501 32,601
Administrative services fee
(note 2c)......................... 847,636 52,419 65,334 30,990 31,306
Shareholder services fee
(note 2d)......................... 335,977 21,519 26,281 12,379 13,544
Registration fees................... 284,343 20,514 44,154 150 65
Custodian fees (note 2e)............ 146,502 42,626 48,881 19,951 18,962
Reports and notices to
shareholders...................... 133,766 6,733 8,329 2,811 3,293
Auditing, consulting and tax
return preparation fees........... 43,406 18,106 18,606 17,106 18,106
Directors' fees and expenses........ 29,470 24,900 24,950 24,900 24,900
Legal fees.......................... 10,225 2,320 2,880 2,200 2,200
Miscellaneous....................... 134,213 6,135 9,815 4,039 6,554
------------ ----------- ---------- ---------- -----------
Total operating expenses............... 15,515,788 1,056,124 1,293,064 601,883 621,123
Less: Investment advisory fee
waived (note 2a)..................... - (258) (1,744) (71,394) (7,866)
Less: Expense offset
arrangement (note 2e)................ (7,532) (7,483) (3,283) (4,683) (4,081)
------------ ----------- ---------- ---------- -----------
Net operating expenses................. 15,508,256 1,048,383 1,288,037 525,806 609,176
------------ ----------- ---------- ---------- -----------
Net investment income................ 77,918,405 4,627,291 3,300,025 1,498,467 1,537,093
Net realized gain (loss)
on investments................... (88) (138) 1,357 (9,304) -
------------ ----------- ---------- ---------- -----------
Net increase in net assets
resulting from operations...........$ 77,918,317 $4,627,153 $3,301,382 $1,489,163 $1,537,093
============ ========== ========== ========== ==========
</TABLE>
See accompanying notes to financial statements.
15
<PAGE>
================================================================================
Statements of Changes in Net Assets
================================================================================
<TABLE>
<CAPTION>
------------------------------ -------------------------------
Primary Portfolio Government Portfolio
------------------------------ -------------------------------
Year ended November 30, Year ended November 30,
------------------------------ -------------------------------
1996 1995 1996 1995
-------------- ------------- -------------- --------------
<S> <C> <C> <C> <C>
Operations
Net investment income.... $ 77,918,405 $ 80,795,389 $ 4,627,291 $ 5,452,937
Net realized gain (loss)
on investments......... (88) 68 (138) 700
--------------- --------------- ------------- -------------
Net increase in net
assets resulting from
operations........... 77,918,317 80,795,457 4,627,153 5,453,637
--------------- --------------- ------------- -------------
Dividends and Distributions
to Shareholders
Net investment income.... (77,918,405) (80,795,389) (4,627,291) (5,452,937)
Net realized gains....... (68) (482) (700) (494)
--------------- --------------- ------------- -------------
Total dividends and
distributions to
shareholders........... (77,918,473) (80,795,871) (4,627,991) (5,453,431)
--------------- --------------- ------------- -------------
Fund Share Transactions
Net proceeds from sales.. 9,931,873,061 8,545,299,477 547,203,168 561,063,508
Reinvestment of dividends
and distributions...... 75,659,105 77,748,816 4,601,454 5,335,254
Cost of shares redeemed.. (9,966,080,610) (8,405,687,289) (559,243,310) (571,041,692)
--------------- --------------- ------------- -------------
Net increase (decrease)
in net assets from
fund share
transactions.......... 41,451,556 217,361,004 (7,438,688) (4,642,930)
--------------- --------------- ------------- -------------
Increase due to voluntary
capital contribution
by adviser (note 2f)... -- -- -- --
--------------- --------------- ------------- -------------
Total increase (decrease)
in net assets.......... 41,451,400 217,360,590 (7,439,526) (4,642,724)
Net Assets
Beginning of year........ 1,671,129,361 1,453,768,771 108,575,030 113,217,754
--------------- --------------- ------------- -------------
End of year.............. $ 1,712,580,761 $ 1,671,129,361 $ 101,135,504 $ 108,575,030
=============== =============== ============= =============
</TABLE>
See accompanying notes to financial statements.
16
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------- ------------------------------- -------------------------------
General Municipal Portfolio California Municipal Portfolio New York Municipal Portfolio
- ------------------------------- ------------------------------- -------------------------------
Year ended November 30, Year ended November 30, Year ended November 30,
- ------------------------------- ------------------------------- -------------------------------
1996 1995 1996 1995 1996 1995
- -------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
$ 3,300,025 $ 3,880,838 $ 1,498,467 $ 1,946,409 $ 1,537,093 $ 1,582,050
1,357 (33,497) (9,304) (618,234) -- (19,669)
- -------------- ------------- ------------- ------------- ------------- -------------
3,301,382 3,847,341 1,489,163 1,328,175 1,537,093 1,562,381
- -------------- ------------- ------------- ------------- ------------- -------------
(3,300,025) (3,880,838) (1,498,467) (1,946,409) (1,537,093) (1,582,050)
-- -- -- -- -- --
- -------------- ------------- ------------- ------------- ------------- -------------
(3,300,025) (3,880,838) (1,498,467) (1,946,409) (1,537,093) (1,582,050)
- -------------- ------------- ------------- ------------- ------------- -------------
718,878,788 667,188,766 276,344,120 296,613,031 317,110,184 303,848,325
3,249,617 3,738,051 1,512,475 1,848,545 1,470,312 1,487,169
(715,812,543) (663,670,132) (300,398,721) (283,854,056) (310,927,499) (300,949,618)
- -------------- ------------- ------------- ------------- ------------- -------------
6,315,862 7,256,685 (22,542,126) 14,607,520 7,652,997 4,385
- -------------- ------------- ------------- ------------- ------------- -------------
-- -- -- 604,407 -- --
- -------------- ------------- ------------- ------------- ------------- -------------
6,317,219 7,223,188 (22,551,430) 14,593,693 7,652,997 4,366,207
115,964,573 108,741,385 75,912,087 61,318,394 52,343,125 47,976,918
- -------------- ------------- ------------- ------------- ------------- -------------
$ 122,281,792 $ 115,964,573 $ 53,360,657 $ 75,912,087 $ 59,996,122 $ 52,343,125
============== ============= ============= ============= ============= =============
</TABLE>
17
<PAGE>
November 30, 1996
================================================================================
Notes to Financial Statements
================================================================================
1. Organization and Significant Accounting Policies
OCC Cash Reserves (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. The amortized cost method involves valuing a security
at cost on the date of purchase and thereafter assuming a constant dollar
amortization to maturity of the difference between the principal amount due at
maturity and the initial cost of the security.
(b) Federal Income Taxes
Each Portfolio intends to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and distributes
substantially all of its taxable and non-taxable income to its shareholders;
accordingly, no Federal income tax provision is required.
(c) 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 and original issue discounts are
accreted to interest income over the lives of the respective securities.
(d) 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.
(e) 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 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.
18
<PAGE>
(f) 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 on
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 voluntarily agreed to reimburse each Portfolio to the
extent that the combined operating expenses of the Portfolio do not exceed 1.00%
of its average daily net assets (net of expense offsets) for any fiscal year.
For the year ended November 30, 1996, the Adviser waived $258, $1,744, $71,394
and $7,866 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 year ended
November 30, 1996, substantially all fees under the Plan were paid to
Oppenheimer & Co., Inc., an affiliated broker-dealer of the Adviser.
(c) Each Portfolio pays Oppenheimer & Co., Inc. and certain other broker-
dealers for administrative services performed for shareholder accounts at an
annual rate of .05% of each PortfolioOs average daily net assets. For the year
ended November 30, 1996, payments to Oppenheimer & Co., Inc. were: Primary
$847,636; Government $52,419; General $65,334; California $30,990; and New York
$31,306.
(d) Each Portfolio reimburses Oppenheimer & Co., Inc. for a portion of its
costs in providing it with shareholder servicing. The Fund has been informed
that for the year ended November 30, 1996, amounts paid to Oppenheimer & Co.,
Inc. for such services were: Primary $323,317; Government $18,497; General
$24,536; California $12,352; and New York $9,212.
(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 $2,000,000 par, Orange County, CA Tax and Revenue
Anticipation 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 year ended November 30, 1996, purchases and sales/maturities of
investment securities were: Primary $10,316,457,954 and $10,361,803,246,
respectively; Government $4,350,947,604 and $4,368,805,841, respectively;
General $577,868,868 and $571,989,155, respectively; California $280,033,105 and
$302,643,187, respectively; and New York $273,168,629 and $268,186,600,
respectively.
19
<PAGE>
November 30, 1996
================================================================================
Notes to Financial Statements (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 statistical rating
organization or, if not rated, are judged by the Adviser to be of comparable
quality. Primary maintains portfolio diversification to reduce investment risk
by not investing more than 25% of its total assets in securities of issuers
conducting their principal business activities in any one industry, except that
under normal circumstances at least 25% of its total assets will be invested in
bank obligations. At November 30, 1996, major industry concentrations were as
follows: Banking--37.2%, Finance--15.3%, Sovereign--11.7%, Automotive--9.6%,
Brokerage--6.9%. 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.
5. Capital Loss Carryforward
At November 30, 1996, accumulated net realized capital loss carryforwards
available as a reduction against future net realized capital gains for Federal
income tax purposes were: Primary--$88 which will expire in 2004; Government--
$138 which will expire in 2004; General--$90,738 of which $12,327 will expire in
1997, $29,512 will expire in 1998, $1,302 will expire in 1999, $13,801 will
expire in 2000, $299 will expire in 2001 and $33,497 will expire in 2003;
California--$30,854 of which $730 will expire in 1999, $5,856 will expire in
2000, $1,137 will expire in 2001, $13,827 will expire in 2003 and $9,304 will
expire in 2004; and New York--$23,801 of which $3,198 will expire in 2000, $934
will expire in 2001 and $19,669 will expire in 2003. To the extent that these
capital loss carryforwards are used to offset future net capital gains, it is
possible that gains so offset will not be distributed to shareholders.
20
<PAGE>
================================================================================
Financial Highlights (For a share outstanding throughout each year)
================================================================================
<TABLE>
<CAPTION>
INCOME FROM DIVIDENDS
INVESTMENT OPERATIONS AND DISTRIBUTIONS
------------------------------------- -------------------------------------------------
Dividends to
Net Asset Net Shareholders Distributions Total Dividends
Value, Net Realized Total from from Net to Shareholders and Distributions
Beginning Investment Gain/(Loss) Investment Investment from Net to
of Year Income on Investments Operations Income Realized Gains Shareholders
<S> <C> <C> <C> <C> <C> <C> <C>
Primary Portfolio
Year ended Nov. 30, 1996 $1.000 $0.046 ($0.000) $0.046 ($0.046) ($0.000) ($0.046)
Year ended Nov. 30, 1995 1.000 0.051 0.000 0.051 (0.051) (0.000) (0.051)
Year ended Nov. 30, 1994 1.000 0.032 0.000 0.032 (0.032) (0.000) (0.032)
Year ended Nov. 30, 1993 1.000 0.024 0.000 0.024 (0.024) (0.000) (0.024)
Year ended Nov. 30, 1992 1.000 0.033 0.000 0.033 (0.033) (0.000) (0.033)
</TABLE>
<TABLE>
<CAPTION>
RATIOS TO
AVERAGE
NET ASSETS
-------------------------
Net Net
Asset Assets,
Value, End of Net Net
End of Total Year Operating Investment
Year Return* (millions) Expenses Income
<S> <C> <C> <C> <C> <C>
Primary Portfolio
Year ended Nov. 30, 1996 $1.000 4.69% $1,712.6 0.91%(1,2) 4.60%(1,2)
Year ended Nov. 30, 1995 1.000 5.19% 1,671.1 0.94% 5.07%
Year ended Nov. 30, 1994 1.000 3.26% 1,453.8 0.91% 3.21%
Year ended Nov. 30, 1993 1.000 2.44% 1,413.9 0.90% 2.41%
Year ended Nov. 30, 1992 1.000 3.38% 1,168.3 0.88% 3.34%
</TABLE>
(1) Average net assets for the year ended November 30, 1996 were $1,695,272,657.
(2) Gross of expense offsets (see note 2e in Notes to Financial Statements).
<TABLE>
<CAPTION>
INCOME FROM DIVIDENDS
INVESTMENT OPERATIONS AND DISTRIBUTIONS
------------------------------------- -------------------------------------------------
Dividends to
Net Asset Net Shareholders Distributions Total Dividends
Value, Net Realized Total from from Net to Shareholders and Distributions
Beginning Investment Gain/(Loss) Investment Investment from Net to
of Year Income on Investments Operations Income Realized Gains Shareholders
<S> <C> <C> <C> <C> <C> <C> <C>
Government Portfolio
Year ended Nov. 30, 1996 $1.000 $0.044 ($0.000) $0.044 ($0.044) ($0.000) ($0.044)
Year ended Nov. 30, 1995 1.000 0.049 0.000 0.049 (0.049) (0.000) (0.049)
Year ended Nov. 30, 1994 1.000 0.031 0.000 0.031 (0.031) -- (0.031)
Year ended Nov. 30, 1993 1.000 0.022 -- 0.022 (0.022) (0.000) (0.022)
Year ended Nov. 30, 1992 1.000 0.032 0.000 0.032 (0.032) -- (0.032)
</TABLE>
<TABLE>
<CAPTION>
RATIOS TO
AVERAGE
NET ASSETS
-----------------------------
Net Net
Asset Assets,
Value, End of Net Net
End of Total Year Operating Investment
Year Return* (millions) Expenses Income
<S> <C> <C> <C> <C> <C>
Year ended Nov. 30, 1996 $1.000 4.51% $ 101.1 1.00%(1,2) 4.41%(1,2)
Year ended Nov. 30, 1995 1.000 5.02% 108.6 1.00%(1) 4.91%(1)
Year ended Nov. 30, 1994 1.000 3.12% 113.2 0.95%(1) 3.08%(1)
Year ended Nov. 30, 1993 1.000 2.26% 127.9 1.00% 2.24%
Year ended Nov. 30, 1992 1.000 3.24% 131.7 0.93%(1) 3.23%(1)
</TABLE>
(1) During the years noted above, the Adviser waived a portion of its fees.
Additionally, for the year ended November 30, 1996, the Portfolio benefited
from an expense offset arrangement with its custodian bank. Had such waivers
and expense offsets not been in effect, the ratios of net operating expenses
to average net assets would have been 1.00%, 1.02%, 0.97% and 0.94%,
respectively, and the ratios of net investment income to average net assets
would have been 4.41%, 4.89%, 3.06% and 3.22%, respectively.
(2) Average net assets for the year ended November 30, 1996 were $104,838,715.
- ---------------
* Assumes reinvestment of all dividends and distributions.
21
<PAGE>
================================================================================
Financial Highlights (For a share outstanding throughout each year) (continued)
================================================================================
<TABLE>
<CAPTION>
INCOME FROM DIVIDENDS AND
INVESTMENT OPERATIONS DISTRIBUTIONS
--------------------------------------- -------------------------
Dividends to
Net Asset Net Shareholders Net Asset
Value, Net Realized Total from from Net Capital Value,
Beginning Investment Gain/(Loss) Investment Investment Contribution End of Total
of Year Income on Investments Operations Income by Adviser Year Return*
<S> <C> <C> <C> <C> <C> <C> <C> <C>
General Municipal Portfolio
Year ended Nov. 30, 1996 $1.000 $0.025 $0.000 $0.025 ($0.025) -- $1.000 2.56%
Year ended Nov. 30, 1995 1.000 0.031 0.000 0.031 (0.031) -- 1.000 3.11%
Year ended Nov. 30, 1994 1.000 0.020 (0.000) 0.020 (0.020) -- 1.000 2.04%
Year ended Nov. 30, 1993 1.000 0.017 (0.000) 0.017 (0.017) -- 1.000 1.74%
Year ended Nov. 30, 1992 1.000 0.026 0.000 0.026 (0.026) -- 1.000 2.66%
</TABLE>
<TABLE>
<CAPTION>
RATIOS TO
AVERAGE
NET ASSETS
-------------------------
Net Assets,
End of Net Net
Year Operating Investment
(millions) Expenses Income
<S> <C> <C> <C>
General Municipal Portfolio
Year ended Nov. 30, 1996 $122.3 0.99%(1,2) 2.53%(1,2)
Year ended Nov. 30, 1995 116.0 0.93%(1) 3.07%(1)
Year ended Nov. 30, 1994 108.7 0.90%(1) 2.01%(1)
Year ended Nov. 30, 1993 109.7 0.98%(1) 1.73%(1)
Year ended Nov. 30, 1992 112.9 0.90%(1) 2.62%(1)
</TABLE>
(1) During the years noted above, the Adviser waived a portion of its fees.
Additionally, for the year ended November 30, 1996, the Portfolio benefited
from an expense offset arrangement with its custodian bank. Had such waivers
and expense offsets not been in effect, the ratios of net operating expenses
to average net assets would have been 0.99%, 1.02%, 1.01% , 1.01% and 1.00%,
respectively, and the ratios of net investment income to average net assets
would have been 2.53%, 2.98%, 1.90%, 1.70% and 2.52%, respectively.
(2) Average net assets for the year ended November 30, 1996 were $130,667,601.
<TABLE>
<CAPTION>
INCOME FROM DIVIDENDS AND
INVESTMENT OPERATIONS DISTRIBUTIONS
--------------------------------------- -------------------------
Dividends to
Net Asset Net Shareholders Net Asset
Value, Net Realized Total from from Net Capital Value,
Beginning Investment Gain/(Loss) Investment Investment Contribution End of Total
of Year Income on Investments Operations Income by Adviser Year Return*
<S> <C> <C> <C> <C> <C> <C> <C> <C>
California Municipal Portfolio
Year ended Nov. 30, 1996 $1.000 $0.024 ($0.000) $0.024 ($0.024) -- $1.000 2.42%
Year ended Nov. 30, 1995 1.000 0.031 (0.008) 0.023 (0.031) $0.008 1.000 3.10%(3)
Year ended Nov. 30, 1994 1.000 0.020 (0.000) 0.020 (0.020) -- 1.000 1.99%
Year ended Nov. 30, 1993 1.000 0.017 (0.000) 0.017 (0.017) -- 1.000 1.76%
Year ended Nov. 30, 1992 1.000 0.025 (0.000) 0.025 (0.025) -- 1.000 2.57%
</TABLE>
<TABLE>
<CAPTION>
RATIOS TO
AVERAGE
NET ASSETS
-----------------------------
Net Assets,
End of Net Net
Year Operating Investment
(millions) Expenses Income
<S> <C> <C> <C>
California Municipal Portfolio
Year ended Nov. 30, 1996 $53.4 0.85%(1,2) 2.42%(1,2)
Year ended Nov. 30, 1995 75.9 0.82%(1) 3.05%(1)
Year ended Nov. 30, 1994 61.3 0.85%(1) 1.99%(1)
Year ended Nov. 30, 1993 62.3 0.85%(1) 1.75%(1)
Year ended Nov. 30, 1992 61.2 0.60%(1) 2.51%(1)
</TABLE>
(1) During the years noted above, the Adviser waived a portion of its fees.
Additionally, for the year ended November 30, 1996, the Portfolio benefited
from an expense offset arrangement with its custodian bank. Had such waivers
and expense offsets not been in effect, the ratios of net operating expenses
to average net assets would have been 0.97%, 0.95%, 0.97%, 0.98% and 1.02%,
respectively, and the ratios of net investment income to average net assets
would have been 2.30%, 2.92%, 1.87%, 1.62% and 2.09%, respectively.
(2) Average net assets for the year ended November 30, 1996 were $61,980,887.
(3) Had the Adviser not made the capital contribution in regard to Orange
County, (see note 2f in Notes to Financial Statements) the PortfolioOs total
return would have been lower.
<TABLE>
<CAPTION>
INCOME FROM DIVIDENDS AND
INVESTMENT OPERATIONS DISTRIBUTIONS
--------------------------------------- -------------------------
Dividends to
Net Asset Net Shareholders Net Asset
Value, Net Realized Total from from Net Capital Value,
Beginning Investment Gain/(Loss) Investment Investment Contribution End of Total
of Year Income on Investments Operations Income by Adviser Year Return*
<S> <C> <C> <C> <C> <C> <C> <C> <C>
New York Municipal Portfolio
Year ended Nov. 30, 1996 $1.000 $0.025 -- $0.025 ($0.025) -- $1.000 2.50%
Year ended Nov. 30, 1995 1.000 0.030 $ 0.000 0.030 (0.030) -- 1.000 3.07%
Year ended Nov. 30, 1994 1.000 0.019 (0.000) 0.019 (0.019) -- 1.000 1.92%
Year ended Nov. 30, 1993 1.000 0.016 (0.000) 0.016 (0.016) -- 1.000 1.66%
Year ended Nov. 30, 1992 1.000 0.025 (0.000) 0.025 (0.025) -- 1.000 2.56%
</TABLE>
<TABLE>
<CAPTION>
RATIOS TO
AVERAGE
NET ASSETS
-------------------------
Net Assets,
End of Net Net
Year Operating Investment
(millions) Expenses Income
<S> <C> <C> <C>
New York Municipal Portfolio
Year ended Nov. 30, 1996 $60.0 0.97%(1,2) 2.45%(1,2)
Year ended Nov. 30, 1995 52.3 0.79%(1) 3.02%(1)
Year ended Nov. 30, 1994 48.0 0.82%(1) 1.90%(1)
Year ended Nov. 30, 1993 42.2 0.79%(1) 1.64%(1)
Year ended Nov. 30, 1992 32.9 0.74%(1) 2.43%(1)
</TABLE>
(1) During the years noted above, the Adviser waived a portion of its fees.
Additionally, for the year ended November 30, 1996, the Portfolio benefited
from an expense offset arrangement with its custodian bank. Had such waivers
and expense offsets not been in effect, the ratios of net operating expenses
to average net assets would have been 0.98%, 1.00%, 1.01%, 1.03% and 1.19%,
respectively, and the ratios of net investment income to average net assets
would have been 2.44%, 2.81%, 1.71%, 1.40% and 1.98%, respectively.
(2) Average net assets for the year ended November 30, 1996 were $62,612,204.
- ---------------------------------------------
* Assumes reinvestment of all dividends.
22
<PAGE>
================================================================================
Independent Accountants Report
================================================================================
To the Shareholders and Board of Directors
of OCC Cash Reserves
In our opinion, the accompanying statements of assets and liabilities, including
the schedules of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of the Primary Portfolio, the
Government Portfolio, the General Municipal Portfolio, the California Municipal
Portfolio and the New York Municipal Portfolio (constituting OCC Cash Reserves,
hereafter referred to as the "Portfolio") at November 30, 1996, the results of
each of their operations for the year then ended, the changes in each of their
net assets for each of the two years in the period then ended, and the financial
highlights for each of the five years in the period then ended, in conformity
with generally accepted accounting principles. These financial statements and
financial highlights (hereafter referred to as "financial statements") are the
responsibility of the Portfolio's management; our responsibility is to express
an opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with generally accepted
auditing standards which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at November 30, 1996 by
correspondence with the custodian and brokers, provide a reasonable basis for
the opinion expressed above.
PRICE WATERHOUSE LLP
1177 Avenue of the Americas
New York, New York 10036
January 20, 1997
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OCC CASH RESERVES
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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
Independent Accountants Report 23
This report is authorized for distribution only to shareholders and to others
who have received a copy of the prospectus.
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OCC CASH RESERVES
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. Primary Portfolio
. Government Portfolio
. General Municipal Portfolio
. California Municipal Portfolio
. New York Municipal Portfolio
Annual Report
November 30, 1996
Managed by
OpCap Advisors
