<PAGE>
OCC CASH RESERVES
July 14, 1998
Dear Shareholder:
As in the past, during the six months ended May 31, 1998, OCC Cash Reserves
continued to meet its objective of providing safety of principal, liquidity and
maximum current income through investment in money market securities.
Since our last report to shareholders, the U.S. financial markets have continued
to march ahead with declining interest rates, a volatile yet historically high
stock market and a strong U.S. dollar. The real rate of return for short term
instruments, which is the return after taking into account inflation, remains
attractive.
The impressive U.S. financial markets are the result of a strong economy
accompanied with a low unemployment rate of 4.3%. Historically, this would cause
the Federal Reserve to raise short term interest rates to stave off likely
inflation. However, this scenario did not occur in the first half of 1998 for a
variety of reasons. The continuing economic crisis in Asia, lower priced Asian
imports and lackluster Asian demand for worldwide products has led to lower
prices of commodities and consumer durable goods while our domestic economy
remains strong. Inflation remains well contained. As a result, the Federal
Reserve did not intervene and increase short term interest rates.
Can the U.S. economy continue to grow in the second half of 1998 or will the
Asian downturn affect the U.S. more severely? The Federal Reserve will continue
to closely monitor the situation and decide whether or not to change short term
interest rates. Regardless of the outcome, the OCC Cash Reserves portfolios are
positioned to maximize yields for shareholders with preservation of capital.
We at OCC Cash Reserves and OpCap Advisors want to thank you for your continued
support 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, 1998, the daily dividends of the Primary
Portfolio averaged 4.87% on an annual basis or 4.98% compounded monthly. At May
31, 1998, the Portfolio had a seven-day compounded yield of 4.91%, down from
4.92% at the beginning of the fiscal year. The average maturity of the Portfolio
during the six months ranged from a low of 46 days to a high of 66 days and on
May 31, 1998 was 60 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 4.63% on an annual basis or
4.73% compounded monthly for the six months ended May 31, 1998. On May 31, 1998,
the seven-day compounded yield of the Portfolio was 4.66%, down from 4.71% at
November 30, 1997. The average maturity of the Portfolio during the six months
ranged from 30 days to 62 days. On May 31, 1998 it was 49 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 2.70% on an annual
basis and 2.73% compounded monthly during the six months ended May 31, 1998. 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 4.52%. The seven-day compounded yield on May 31, 1998 was
2.82% compared with the beginning of the fiscal year when it was 2.96%. Average
maturity for the Portfolio ranged from 35 days to 52 days and on May 31, 1998
was 51 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 discounts notes and participation
interest in the foregoing.
Semi-Annual Review
For the six months ended May 31, 1998, the daily dividend averaged 2.50% on an
annual basis and 2.53% 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 compounded return would be equivalent
to a taxable return of 4.71%. Between the end of the last fiscal year and May
31, 1998, the seven-day compounded yield fell from 2.81% to 2.71%. The average
maturity of the securities in the Portfolio ranged from 21 days to 59 days and
was 33 days on May 31, 1998.
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, 1998, the daily dividends of the Portfolio
averaged 2.56% on an annual basis and 2.60% compounded monthly. This was
equivalent to an effective taxable yield of 4.85% 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%, 6.85% and 4.46%, respectively. The seven-day compounded
yield fell from 2.86% to 2.75% between the 1997 fiscal year-end and May 31,
1998. The average maturity of the Portfolio ranged between 34 days to 52 days.
On May 31, 1998 it was 46 days.
3
<PAGE>
May 31, 1998
================================================================================
SCHEDULES OF INVESTMENTS (unaudited)
================================================================================
- --------------------------------------------------------------------------------
PRIMARY PORTFOLIO
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal
Amount
(000) Value
- --------------------------------------------------------------------------------
<S> <C>
U.S. Government Agencies--4.7%
$ 104,000 Federal Home Loan Bank,
5.68%-5.76%,
3/4/99-5/4/99
(amortized cost--$104,000,000)............ $ 104,000,000
---------------
Bankers Acceptances--3.4%
$ 75,000 First Union National Bank NC,
5.49%-5.51%,
6/29/98-7/27/98
(amortized cost--$75,000,000)............. $ 75,000,000
--------------
Certificates of Deposit--13.1%
$ 40,000 Bank of Nova Scotia,
5.56%, 10/13/98.......................... $ 40,000,000
80,000 Canadian Imperial Bank of Commerce,
5.54%-5.55%,
6/9/98-7/13/98........................... 80,000,000
35,000 National Westminster Bank plc,
5.51%, 8/5/98............................ 35,000,000
60,000 Rabobank Nederland NV,
5.55%-5.65%,
9/21/98-12/28/98......................... 60,000,000
40,000 Societe Generale Bank,
5.66%, 11/9/98........................... 40,000,000
35,000 Svenska Handelsbanken Inc.,
5.56%, 6/15/98........................... 35,000,000
--------------
Total Certificates of Deposit
(amortized cost--$290,000,000).......................... $ 290,000,000
--------------
Commercial Paper--78.7%
$ 75,000 Abbey National North America,
5.41%-5.50%,
8/18/98-10/26/98......................... $ 73,829,125
50,000 ABN-Amro North America Finance Inc.,
5.40%-5.43%,
9/25/98-10/5/98.......................... 49,090,083
65,000 American Express Credit Corp.,
5.49%-5.50%,
6/17/98-7/6/98........................... 64,766,481
34,600 American Home Products Corp.,
5.48%-5.50%,
6/15/98-7/13/98.......................... 34,463,694
36,400 Banc One Corp.,
5.48%, 6/8/98............................ 36,361,214
25,000 Barclays Bank plc,
5.67%, 12/16/98.......................... 24,996,031
38,000 BP America Inc.,
5.63%, 6/1/98............................ 38,000,000
54,000 British Columbia (Province of),
5.45%-5.66%,
6/2/98-6/30/98........................... 53,891,187
35,000 Corporate Asset Funding Corp.,
5.48%, 6/22/98........................... 34,888,117
60,000 Daimler-Benz North America Corp.,
5.40%-5.50%,
7/13/98-9/14/98.......................... 59,335,000
30,000 Deere (John) Capital Corp.,
5.51%, 6/15/98........................... 29,935,717
50,000 Diageo Capital plc,
5.41%-5.43%,
6/2/98-6/3/98............................ 49,987,944
24,930 Dover Corp.,
5.50%-5.53%,
6/5/98-6/10/98........................... 24,906,065
28,345 Eksportfinans AS,
5.49%-5.50%,
6/18/98-7/2/98........................... 28,239,361
20,000 Ford Credit Europe plc,
5.52%, 7/22/98 .......................... 19,843,600
55,000 Ford Motor Credit Corp.,
5.47%-5.52%,
6/8/98-7/23/98........................... 54,734,210
40,000 General Electric Capital Corp.,
5.42%-5.50%,
6/8/98-8/3/98............................ 39,786,422
71,000 General Motors Acceptance Corp.,
5.49%-5.52%,
7/6/98-8/3/98............................ 70,472,844
85,000 Goldman Sachs Group L.P.,
5.50%-5.52%,
7/16/98-8/19/98.......................... 84,215,250
75,000 Household Financial Corp.,
5.50%-5.51%,
6/22/98-6/30/98.......................... 74,694,492
40,000 IBM Corp.,
5.50%, 8/17/98........................... 39,529,444
17,000 IBM Credit Corp.,
5.655%, 11/20/98......................... 17,000,000
81,817 Merrill Lynch & Co. Inc.,
5.51%-5.62%,
6/1/98-7/15/98........................... 81,491,650
25,000 Morgan (J.P.) & Co. Inc.,
5.50%, 9/28/98........................... 24,545,486
</TABLE>
4
<PAGE>
================================================================================
================================================================================
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal
Amount
(000) Value
- --------------------------------------------------------------------------------
<S> <C>
Commercial Paper (cont'd.)
$ 80,000 Morgan Stanley, Dean Witter,
Discovery & Co.,
5.49%, 7/20/98-8/24/98................... $ 79,264,950
75,000 NationsBank Corp.,
5.43%-5.49%,
7/20/98-10/19/98......................... 73,757,354
30,000 Norwest Financial Inc.,
5.49%-5.52%,
6/16/98-7/6/98........................... 29,891,346
75,000 Novartis Finance Corp.,
5.48%-5.51%,
6/3/98-7/1/98............................ 74,846,644
10,000 Oesterreichische Kontrollbank AG,
5.52%, 6/22/98........................... 9,967,800
25,000 Royal Bank of Canada,
5.63%, 6/8/98............................ 24,972,632
60,000 Skandinaviska Enskilda Banken
Funding Inc.,
5.50%, 6/25/98-6/29/98................... 59,761,667
53,000 Svenska Handelsbanken Inc.,
5.49%-5.53%,
6/30/98-7/29/98.......................... 52,639,973
80,000 Swedish Export Credit Corp.,
5.40%-5.44%,
9/21/98-10/20/98......................... 78,549,492
70,000 Toronto-Dominion Holdings USA Inc.,
5.50%-5.60%,
6/1/98-8/10/98........................... 69,688,111
9,800 Transamerica Finance Corp.,
5.51%, 7/24/98........................... 9,720,503
41,900 U.S. Borax & Chemical Corp.,
5.50%-5.52%,
8/10/98-8/17/98.......................... 41,430,882
29,000 USAA Capital Corp.,
5.46%-5.49%,
6/24/98-7/20/98.......................... 28,819,799
--------------
Total Commercial Paper
(amortized cost--$1,742,314,570)....................... $1,742,314,570
--------------
Total Investments
(amortized cost--$2,211,314,570+).......... 99.9% $2,211,314,570
Other Assets in Excess
of Liabilities............................ 0.1 2,024,235
----- --------------
Total Net Assets............................. 100.0% $2,213,338,805
===== ==============
</TABLE>
- --------------------------------------------------------------------------------
GOVERNMENT PORTFOLIO
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal
Amount
(000) Value
- --------------------------------------------------------------------------------
<S> <C>
U.S. Government Agencies--99.9%
Federal Farm Credit Bank--1.1%
$ 890 5.40%, 6/3/98............................ $ 889,733
40 5.41%, 7/13/98........................... 39,748
95 5.42%, 6/26/98........................... 94,642
--------------
Total Federal Farm Credit Bank
(amortized cost--$1,024,123)............................ $ 1,024,123
--------------
Federal Home Loan Bank--28.9%
$ 1,121 5.37%, 6/22/98........................... $ 1,117,488
900 5.37%, 8/12/98........................... 890,334
320 5.37%, 8/26/98........................... 315,895
4,200 5.38%, 6/17/98........................... 4,189,957
857 5.38%, 7/6/98............................ 852,517
1,000 5.38%, 11/9/98........................... 975,939
362 5.39%, 10/16/98.......................... 354,575
178 5.40%, 6/8/98............................ 177,813
7,306 5.40%, 6/15/98........................... 7,290,657
185 5.40%, 6/24/98........................... 184,362
3,390 5.41%, 6/11/98........................... 3,384,906
2,110 5.42%, 7/30/98........................... 2,091,257
1,500 5.68%, 3/4/99............................ 1,500,000
1,000 5.70%, 3/17/99........................... 1,000,000
1,000 5.75%, 5/4/99............................ 1,000,000
1,000 5.76%, 4/8/99............................ 1,000,000
--------------
Total Federal Home Loan Bank
(amortized cost--$26,325,700)........................... $ 26,325,700
--------------
Federal Home Loan Mortgage Corporation--30.0%
$ 4,100 5.29%, 8/4/98............................ $ 4,061,442
413 5.35%, 8/6/98............................ 408,949
50 5.37%, 7/17/98........................... 49,657
500 5.40%, 6/9/98............................ 499,400
2,800 5.40%, 6/10/98........................... 2,796,220
157 5.40%, 6/12/98........................... 156,741
3,405 5.40%, 7/28/98........................... 3,375,887
2,000 5.40%, 7/31/98........................... 1,982,000
2,412 5.40%, 8/4/98............................ 2,388,845
</TABLE>
5
<PAGE>
May 31, 1998
================================================================================
SCHEDULES OF INVESTMENTS (unaudited) (continued)
================================================================================
- --------------------------------------------------------------------------------
GOVERNMENT PORTFOLIO (cont'd.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal
Amount
(000) Value
- --------------------------------------------------------------------------------
<S> <C>
Federal Home Loan Mortgage Corporation (cont'd.)
$ 4,075 5.40%, 8/6/98............................ $ 4,034,658
101 5.40%, 8/13/98........................... 99,894
1,000 5.425%, 7/20/98.......................... 992,616
100 5.44%, 7/30/98........................... 99,108
6,400 5.55%, 6/1/98............................ 6,400,000
--------------
Total Federal Home Loan Mortgage Corporation
(amortized cost--$27,345,417)........................... $ 27,345,417
--------------
Federal National Mortgage Association--39.9%
$ 2,000 5.39%, 7/16/98........................... $ 1,986,525
22 5.39%, 7/24/98 .......................... 21,825
7,500 5.39%, 8/10/98........................... 7,421,396
30 5.40%, 6/24/98........................... 29,897
3,580 5.40%, 7/17/98........................... 3,555,298
3,268 5.40%, 8/5/98............................ 3,236,137
8,000 5.41%, 6/12/98........................... 7,986,776
5,000 5.41%, 6/22/98........................... 4,984,221
1,000 5.41%, 6/24/98........................... 996,544
126 5.41%, 7/13/98........................... 125,205
500 5.41%, 7/20/98........................... 496,318
3,000 5.41%, 8/24/98........................... 2,962,130
575 5.47%, 6/8/98............................ 574,388
2,000 5.48%, 6/30/98........................... 1,991,171
--------------
Total Federal National Mortgage Association
(amortized cost--$36,367,831).......................... $ 36,367,831
--------------
Total Investments
(amortized cost--$91,063,071+)............. 99.9% $ 91,063,071
Other Assets in Excess
of Liabilities............................ 0.1 39,852
----- --------------
Total Net Assets............................. 100.0% $ 91,102,923
===== ==============
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
GENERAL MUNICIPAL PORTFOLIO
- --------------------------------------------------------------------------------
<S> <C>
Alabama--2.5%
$ 450 Alabama St. PSA,
4.10%, 12/1/98........................... $ 450,861
700 Birmingham Baptist Med. Ctr.,
Special Care Facs. FAR,
Senior Living Cmntys. Proj., Ser. A,
VRDN* (LC; Fuji Bank Ltd.
and Banco de Santander S.A.),
3.95%, 6/3/98............................ 700,000
1,000 Mobile GO,
(Insd.; MBIA),
3.70%, 2/15/99........................... 999,890
1,800 Phenix Cnty. IDB, EIR,
Mead Coated Board Proj.,
Ser. A, VRDN*
(LC; Toronto-Dominion Bank),
4.05%, 6/1/98............................ 1,800,000
--------------
3,950,751
--------------
Alaska--3.6%
3,600 Alaska St. HF Corp.,
Ser. A, VRDN*
(LC; Credit Suisse Bank),
3.85%, 6/3/98............................ 3,600,000
2,000 Valdez Marine Term. Rev.,
Arco Trans. Proj., Ser. B, VRDN*
(Insd.; Atlantic Richfield Co.),
3.90%, 6/3/98............................ 2,000,000
--------------
5,600,000
--------------
Arizona--3.5%
1,000 Arizona Edl. Ln. Mktg. Corp.,
ELR, Ser. A, VRDN*
(LC; Dresdner Bank AG),
3.95%, 6/3/98............................ 1,000,000
2,000 Cochise Cnty. PCR, SWDR,
Arizona Elec. Pwr. Coop. Inc. Proj.,
3.55%, 9/1/98**.......................... 2,000,000
2,400 Mohave Cnty. IDA, IDR,
Citizens Utilities,
3.80%, 8/25/98........................... 2,400,000
--------------
5,400,000
--------------
California--1.4%
1,000 California HEL, SLR,
Sr. Lien., Ser. A-1,
VRDN* (LC; SLMA),
4.00%, 7/1/98............................ 1,000,000
900 Orange Cnty. WD Ctfs. Partn.,
Ser. B, VRDN*
(LC; National Westminster Bank plc),
3.80%, 6/1/98............................ 900,000
</TABLE>
6
<PAGE>
================================================================================
================================================================================
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal
Amount
(000) Value
- --------------------------------------------------------------------------------
<S> <C>
$ 300 Regional Airports Improvements Corp.,
Los Angeles Int'l. Airports, VRDN*
(LC; Societe Generale Bank),
4.05%, 6/1/98............................ $ 300,000
--------------
2,200,000
--------------
Colorado--4.8%
750 Colorado Springs Utilities Rev.,
Ser. A,
5.50%, 11/15/98.......................... 756,480
Denver City & Cnty.,
Colorado Airport Sys., Ser. 1997A,
(LC; Bayerische Landesbank
Girozentrale),
2,800 3.50%, 6/9/98............................ 2,800,000
2,000 3.65%, 9/1/98............................ 2,000,000
2,000 3.75%, 8/11/98........................... 2,000,000
--------------
7,556,480
--------------
Delaware--2.0%
Delaware St. EDAR,
Delmarva Pwr. & Lt. Co. Proj.,
VRDN*
300 Exempt Facs., Ser. A,
4.15%, 6/1/98 ........................... 300,000
2,800 Gas Facs.,
4.15%, 6/1/98............................ 2,800,000
--------------
3,100,000
--------------
District of Columbia--.7%
1,000 District of Columbia GO,
Ser. B, (Insd.; MBIA),
7.75%, 6/1/98 (A)........................ 1,020,000
--------------
Florida--4.6%
400 Dade Cnty. IDA,
Florida Pwr. & Lt. Co., VRDN*
4.05%, 6/1/98............................ 400,000
500 Lee Cnty. Capital Improvements Rev.,
Ser. B, (Insd.; MBIA),
4.30%, 10/1/98........................... 500,954
5,000 Orange Cnty. HFR,
Pooled Hospital Loan Program,
Ser. 1985, (Insd.; MBIA),
3.45%, 6/1/98............................ 5,000,000
1,250 Putnam Cnty. DA, PCR,
Seminole Elec. Co. Proj.,
Ser. H-1, VRDN*
3.95%, 6/3/98............................ 1,250,000
--------------
7,150,954
--------------
Georgia--4.9%
Burke Cnty. DA, PCR,
Pwr. Co. Voltage,
2,000 Ser. 3, VRDN*
4.05%, 6/1/98............................ 2,000,000
1,400 Ser. 5, VRDN*
4.00%, 6/1/98............................ 1,400,000
2,000 Georgia Municipal Electric Auth., Ser. B,
(LC; Morgan Guaranty Trust),
3.70%, 8/12/98........................... 2,000,000
2,300 Georgia St. GO,
7.25%, 9/1/98............................ 2,320,880
--------------
7,720,880
--------------
Hawaii--1.0%
1,000 Hawaii St. Secondary Mkt. Svcs. Corp.,
SLR, Ser. II, VRDN*
(LC; National Westminster Bank plc),
4.00%, 6/3/98............................ 1,000,000
500 Honolulu City & Cnty. GO,
Ref. & Improvements, Ser. B,
4.50%, 10/1/98........................... 501,199
--------------
1,501,199
--------------
Illinois--6.8%
5,100 Chicago O'Hare Int'l. Airport, Ser. B, VRDN*
(LC; Societe Generale Bank),
3.95%, 6/3/98............................ 5,100,000
300 Cicero GO, Tax Increment,
Ser. A, (Insd.; AMBAC),
4.45%, 12/1/98........................... 300,829
</TABLE>
7
<PAGE>
May 31, 1998
================================================================================
SCHEDULES OF INVESTMENTS (unaudited) (continued)
================================================================================
- --------------------------------------------------------------------------------
GENERAL MUNICIPAL PORTFOLIO (cont'd.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal
Amount
(000) Value
- --------------------------------------------------------------------------------
<S> <C>
Illinois (cont'd.)
$ 1,700 Illinois Hlth. FAR,
Hosp. Sisters Svc. Proj.,
Ser. E, VRDN*
(Insd.; MBIA),
3.95%, 6/3/98............................ $ 1,700,000
2,900 Joliet Regl. Port Dist.,
Exxon Proj., VRDN*
4.00%, 6/1/98............................ 2,900,000
655 University Rev.,
Auxiliary Facs. Sys.,
(Insd.; MBIA),
4.00%, 10/1/98........................... 655,629
--------------
10,656,458
--------------
Indiana--3.1%
4,800 City of Indianapolis Gas & Util. Sys.,
3.60%, 6/10/98........................... 4,800,000
--------------
Kentucky--1.4%
200 Boone Cnty. PCR,
Cincinnati Gas & Elec. Co. Proj.,
Ser. A, VRDN*
(LC; Union Bank of Switzerland),
3.90%, 6/1/98............................ 200,000
2,000 Kentucky HEL, Student Loan Corp.,
SLR, Ser. E, VRDN*
(Insd.; AMBAC),
3.95%, 6/3/98............................ 2,000,000
--------------
2,200,000
--------------
Louisiana--1.0%
1,000 Jefferson Sales Tax Dist.,
Special STR,
Ser. A, (Insd.; FGIC),
6.25%, 12/1/98........................... 1,012,675
500 Louisiana St. Gas & Fuel Tax Rev.,
Ser. A, (Insd.; FGIC),
7.00%, 11/15/98.......................... 507,426
--------------
1,520,101
--------------
Maryland--3.9%
Anne Arundel Cnty. EDR,
Baltimore Gas & Elec. Co. Proj.,
3,000 3.65%, 6/1/98............................ 3,000,000
2,000 3.75%, 9/2/98............................ 2,000,000
1,000 Montgomery Cnty. GO,
Constr. Pub. Improvements, Ser. A,
5.00%, 5/1/99............................ 1,011,547
--------------
6,011,547
--------------
Michigan--4.2%
1,000 Michigan Mun. Bd. Auth. Rev., Ser. B,
4.50%, 7/2/98............................ 1,000,572
4,100 University of Michigan,
Hosp. Rev., Ser. A,
4.00%, 6/1/98............................ 4,100,000
1,375 Wayne-Westland Cmnty. Schs. GO,
5.00%, 5/1/99............................ 1,389,341
--------------
6,489,913
--------------
Missouri--3.0%
Missouri EIERA, PCR,
Union Elec. Co. Proj., Ser. A,
600 (LC; Swiss Bank Corp.),
3.95%, 6/1/98............................ 600,000
4,000 (LC; Union Bank of Switzerland),
3.70%, 9/8/98............................ 4,000,000
--------------
4,600,000
--------------
Nebraska--2.4%
Nebraska HEL Prog.,
Student Loan Prog., (LC; SLMA),
2,100 Ser. A, VRDN*
3.95%, 6/3/98............................ 2,100,000
1,600 Ser. C, VRDN*
3.95%, 6/3/98............................ 1,600,000
--------------
3,700,000
--------------
Nevada--.6%
300 Clark Cnty. AIR,
Sub. Lien, Ser. A-2, VRDN*
(LC; Union Bank of Switzerland),
4.00%, 6/3/98............................ 300,000
575 Henderson City GO,
Parks & Rec. Proj., Ser. A,
(Insd.; FGIC),
6.25%, 6/1/98............................ 575,000
--------------
875,000
--------------
New Jersey--1.0%
400 Monmouth Cnty. GO,
5.00%, 7/1/98............................ 400,453
1,210 Parsippany-Troy Hills Township GO,
4.50%, 12/1/98........................... 1,215,385
--------------
1,615,838
--------------
New Mexico--.4%
665 Santa Fe Gross Receipts, Tax Rev.,
Ser. A, (Insd.; AMBAC),
4.25%, 6/1/98............................ 665,000
--------------
</TABLE>
8
<PAGE>
================================================================================
================================================================================
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal
Amount
(000) Value
- --------------------------------------------------------------------------------
<S> <C>
New York--6.8%
$ 1,500 Babylon IDA, RRR,
Ogden Martin Sys. Babylon Inc.,
Ser. C,
8.50%, 7/1/98 (A)........................ $ 1,550,443
1,000 Long Island Power Authority Rev.,
3.70%, 10/19/98.......................... 1,000,000
2,000 Nassau Cnty. RAN's,
Ser. A, dtd. 5/12/98,
4.00%, 3/10/99........................... 2,003,640
1,000 New York City Transitional FAR,
Future Tax, Second Ser. C, VRDN*
3.95%, 6/1/98............................ 1,000,000
3,800 New York City Water & Sewer Auth.,
Ser. 4,
3.45%, 6/25/98........................... 3,800,000
700 New York St. DAR,
Montefiore Med. Ctr. Proj.,
(Insd.; AMBAC),
4.50%, 8/1/98............................ 700,733
500 New York St. EFC, PCR,
St. Wtr. Revolving Fd., Ser. A,
4.80%, 6/15/98........................... 500,171
--------------
10,554,987
--------------
Ohio--2.6%
Ohio St. Air Quality DA,
1,000 JMG Fdg. Ltd. Proj.,
Ser. B, VRDN*
(LC; Societe Generale Bank),
3.90%, 6/3/98............................ 1,000,000
2,100 Pollution Control Cleveland Elec.,
Ser. B, (Insd.; FGIC),
3.70%, 9/8/98............................ 2,100,000
1,000 Ohio St. GO,
5.30%, 8/1/98............................ 1,003,035
--------------
4,103,035
--------------
Pennsylvania--3.2%
700 Bethlehem Area Sch. Dist. GO,
Ser. A, (Insd.; AMBAC),
6.25%, 9/1/98............................ 703,927
300 Pennsylvania St. GO,
Refunding & Projects, Ser. 2nd,
4.75%, 6/15/98........................... 300,078
2,000 Pennsylvania St. HEA, SLR,
Ser. A, VRDN*
(LC; SLMA),
3.90%, 6/3/98............................ 2,000,000
1,000 Peters Township Sch. Dist. GO,
(Insd.; FGIC),
5.50%, 5/15/99........................... 1,015,750
1,000 Philadelphia TRAN's,
Ser. A, dtd. 7/2/97,
4.50%, 6/30/98........................... 1,000,382
--------------
5,020,137
--------------
Tennessee--1.5%
2,300 Hamilton Cnty. IDR,
Seaboard Feeds Inc. Proj., VRDN*
(LC; Bank of New York),
4.00%, 6/4/98............................ 2,300,000
--------------
Texas--15.4%
1,000 Brazos HEA,
Ser. B-1, VRDN*
(CS; SLMA),
4.00%, 6/3/98............................ 1,000,000
3,000 Brazos River Auth.,
Ser. 1993,
3.70%, 6/1/98............................ 3,000,000
Harris Cnty. GO,
1,400 4.00%, 10/1/98........................... 1,400,725
1,000 5.75%, 10/1/98........................... 1,006,933
Harris Cnty. HFDCR,
St. Lukes Episcopal Hosp.,VRDN*
900 Ser. A,
4.05%, 6/1/98............................ 900,000
400 Ser. B,
4.05%, 6/1/98............................ 400,000
2,600 Harris Cnty. ID Corp.,
Marine Terminal Rev.,
Lubrizol Corp. Proj., VRDN*
3.85%, 6/3/98............................ 2,600,000
Lone Star Airport Improvements Auth.,
Multiple Mode, VRDN*
(LC; Royal Bank of Canada),
200 Ser. B-1,
4.00%, 6/1/98............................ 200,000
100 Ser. B-3,
4.00%, 6/1/98............................ 100,000
</TABLE>
9
<PAGE>
May 31, 1998
================================================================================
SCHEDULES OF INVESTMENTS (unaudited) (continued)
================================================================================
- --------------------------------------------------------------------------------
GENERAL MUNICIPAL PORTFOLIO (cont'd.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal
Amount
(000) Value
- --------------------------------------------------------------------------------
<S> <C>
Texas (cont'd.)
$ 1,400 Lower Colorado River Auth. Tex. Rev.,
Jr. Lien, Ser. 3rd Suppl., VRDN*
(Insd.; MBIA),
3.90%, 6/3/98............................ $ 1,400,000
600 North Central HFDCR,
Presbyterian Hosp. Med. Center,
Ser. C, VRDN*
(Insd.; MBIA),
4.00%, 6/3/98............................ 600,000
750 Round Rock GO,
(Insd.; FGIC),
6.40%, 8/1/98............................ 753,333
2,800 Southwest HEA,
Southern Methodist Univ.,
(LC; Morgan Guaranty Trust
and J.P. Morgan),
4.10%, 6/1/98............................ 2,800,000
510 Texas HEA, EEIR, Ser. B, VRDN*
(Insd.; FGIC),
3.90%, 6/3/98............................ 510,000
3,300 Texas Housing & Cmnty. Affairs,
Ser. A,
3.65%, 7/8/98............................ 3,300,000
2,000 Texas Municipal Pwr. Agy.,
3.70%, 8/10/98........................... 2,000,000
2,000 Texas St. TRAN's, Ser. A,
dtd. 9/2/97,
4.75%, 8/31/98........................... 2,004,953
--------------
23,975,944
--------------
Utah--5.1%
Intermountain Pwr. Agy.,
(Insd.; AMBAC),
3,000 Ser. '85E,
3.70%, 8/24/98........................... 3,000,000
2,000 Ser. '85F,
3.75%, 9/14/98........................... 2,000,000
1,000 Intermountain Pwr. Agy., PSR,
Ser. E, (LC; Swiss Bank Corp.),
3.45%, 9/15/98........................... 1,000,000
2,000 Utah St. Brd. Regents SLR,
Ser. L, VRDN*
(Insd.; AMBAC),
4.00%, 6/3/98............................ 2,000,000
--------------
8,000,000
--------------
Virginia--3.9%
4,800 Fairfax Cnty. IDA,
Ser. '93B,
3.40%, 6/3/98............................ 4,800,000
500 Norfolk IDA Rev.,
Sentara Hosp. Proj., Ser. B,
7.875%, 11/1/98 (A)...................... 518,143
800 Virginia St. Res. Auth.,
Water Sys. Rev.,
7.875%, 10/1/98 (A)...................... 826,384
--------------
6,144,527
--------------
Washington--1.8%
1,025 Seattle City GO, Ser. B,
4.00%, 8/1/98............................ 1,025,123
Washington St. GO,
500 Ser. B, 5.90%, 6/1/98.................... 500,000
500 7.10%, 6/1/98............................ 500,000
850 Ser. '89A, 7.20%, 9/1/98 (A)............. 857,290
--------------
2,882,413
--------------
West Virginia--.6%
1,000 West Virginia Pub. Auth. Rev.,
Morgantown Assoc. Proj.,
(LC; Swiss Bank Corp.),
3.80%, 6/10/98........................... 1,000,000
--------------
Wisconsin--4.2%
2,600 Milwaukee Rev.,
Sch. Order Notes, Ser. B,
4.25%, 8/27/98........................... 2,602,588
450 Wisconsin HFR,
Columbia Hosp. Inc.,
(Insd.; MBIA),
5.80%, 11/15/98.......................... 453,798
500 Wisconsin HHEFAR,
Childrens Hosp. Wisconsin Proj.,
Ser. B, (Insd.; FGIC),
7.625%, 8/15/98 (A)...................... 513,674
2,900 Wisconsin St. HFFAR,
Hosp. Sisters Oblig.,
Ser. G, VRDN* (Insd.; MBIA),
3.95%, 6/3/98............................ 2,900,000
--------------
6,470,060
--------------
Total Investments
(amortized cost--$158,785,224+)............ 101.9% $ 158,785,224
Liabilities in Excess
of Other Assets........................... (1.9) (2,934,470)
----- --------------
Total Net Assets............................. 100.0% $ 155,850,754
===== ==============
</TABLE>
10
<PAGE>
================================================================================
================================================================================
- --------------------------------------------------------------------------------
CALIFORNIA MUNICIPAL PORTFOLIO
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal
Amount
(000) Value
- --------------------------------------------------------------------------------
<S> <C>
California--97.4%
$ 500 Alameda Contra Costa School FA,
Capital Improvements, Ser. B, VRDN*
(LC; Canadian Imperial Bank
of Commerce),
3.55%, 6/4/98............................ $ 500,000
320 Alameda Cnty. IDA, Indl. Rev.,
Intermountain Trading, VRDN*
(LC; California St. Tchrs. Ret. Fd.),
3.65%, 6/3/98............................ 320,000
1,900 Anaheim Ctfs. Partn.,
1993 Ref. Projs., VRDN*
(LC; ABN-Amro Bank),
3.70%, 6/3/98............................ 1,900,000
California HFFAR,
Hosp. Adventist Hlth. Sys.,
(LC; California St. Tchrs. Ret. Fd.),
2,200 Ser. A, VRDN*
3.75%, 6/1/98............................ 2,200,000
1,000 Ser. B, VRDN*
3.75%, 6/1/98............................ 1,000,000
2,000 Kaiser Permanente Proj.,
Ser. A, VRDN*
3.80%, 6/3/98............................ 2,000,000
2,000 Memorial Hlth. Svcs. Proj., VRDN*
3.65%, 6/3/98............................ 2,000,000
California PCFA, PCR,
2,000 Homestake Mining Proj., Ser. '84A,
VRDN* (LC; Bank of Nova Scotia),
3.75%, 6/3/98............................ 2,000,000
Pacific Gas & Elec. Co.,
1,000 Ser. A, VRDN*
(LC; Swiss Bank Corp.),
3.75%, 6/3/98............................ 1,000,000
1,700 Ser. B, VRDN*
(LC; Deutsche Bank AG),
3.85%, 6/1/98............................ 1,700,000
2,200 Ser. C, VRDN*
(LC; Bank of America),
3.80%, 6/1/98............................ 2,200,000
600 Ser. D, VRDN*
3.90%, 6/3/98............................ 600,000
100 Southern California Edison,
Ser. A, VRDN*
3.90%, 6/1/98............................ 100,000
2,000 California PCFA, PCR, RRR,
Wadham Energy Proj., Ser. C,
VRDN* (LC; Banque de Paribas),
4.50%, 6/3/98 ........................... 2,000,000
400 California PCFA, SWDR,
Shell Oil Co. Martinez Proj.,
Ser. A, VRDN*
3.80%, 6/1/98............................ 400,000
California PCR,
Pacific Gas & Elec. Co., Ser. 1996D,
(LC; Union Bank of Switzerland),
1,000 3.45%, 9/1/98............................ 1,000,000
2,500 3.60%, 8/11/98........................... 2,500,000
1,000 California SCD Auth. Multifamily Rev.,
Greenback Manor Apts.,
Ser. A, VRDN*
(LC; East West Bank and FHLB),
3.70%, 6/4/98............................ 1,000,000
California SCD Auth. Rev. Ctfs. Partn.,
600 John Muir/Mt. Diablo Hlth.,
VRDN* (Insd.; AMBAC),
3.80%, 6/1/98............................ 600,000
California SCD Corp. Rev., ID,
(LC; California St. Tchrs. Ret. Fd.),
695 Florestone Prod. Proj., VRDN*
3.70%, 6/3/98............................ 695,000
1,950 South Bay Circuits Proj., VRDN*
3.70%, 6/3/98............................ 1,950,000
700 Staub Prod. Proj., Ser. A, VRDN*
3.70%, 6/3/98............................ 700,000
200 Upholstery Prod. Proj., VRDN*
3.70%, 6/3/98............................ 200,000
2,000 California St. Dept. of Water,
3.55%, 9/8/98 ........................... 2,000,000
4,600 California St. GO,
3.50%, 6/10/98........................... 4,600,000
3,500 California St. RAN's,
dtd. 9/9/97,
4.50%, 6/30/98........................... 3,502,312
1,250 Contra Costa Cnty. TRAN's,
Ser. A, dtd. 7/1/97,
4.50%, 7/1/98............................ 1,250,709
615 Countywide Pub. FAR,
(Insd.; MBIA),
4.10%, 8/1/98............................ 615,607
1,400 Fresno USD,
Ser. D, (Insd.; FSA),
4.50%, 2/1/99............................ 1,407,206
</TABLE>
11
<PAGE>
May 31, 1998
================================================================================
SCHEDULES OF INVESTMENTS (unaudited) (continued)
================================================================================
- --------------------------------------------------------------------------------
CALIFORNIA MUNICIPAL PORTFOLIO (cont'd.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal
Amount
(000) Value
- --------------------------------------------------------------------------------
<S> <C>
California (cont'd.)
$ 2,180 Irvine Pub. Facs. & Infrastructure,
Auth. Lease Rev.,
Capital Improvements Proj., VRDN*
(LC; National Westminster Bank plc),
3.55%, 6/4/98............................ $ 2,180,000
1,200 Irvine Ranch WD, Ser. A,
VRDN* (LC; Bank of America),
3.75%, 6/1/98............................ 1,200,000
1,500 Los Angeles TRAN's,
dtd. 7/1/97,
4.50%, 6/30/98........................... 1,500,754
1,500 Los Angeles USD TRAN's,
dtd. 7/1/97,
4.50%, 7/1/98............................ 1,500,790
1,090 Oakland TRAN's,
dtd. 7/24/97,
4.50%, 6/30/98........................... 1,090,616
1,500 Orange Cnty. WD Ctfs. Partn.,
Ser. B, VRDN*
(LC; National Westminster Bank plc),
3.80%, 6/1/98............................ 1,500,000
2,000 Riverside Cnty. TRAN's,
Ser. A, dtd. 7/1/97,
4.50%, 6/30/98........................... 2,000,840
1,000 Sacramento Cnty. TRAN's,
dtd. 7/1/97,
4.50%, 9/30/98........................... 1,002,260
250 San Diego TRAN's,
dtd. 7/1/97,
(LC; Canadian Imperial Bank of
Commerce and Bank of Nova Scotia),
4.50%, 9/30/98........................... 250,586
1,965 San Diego Unified Port Dist.,
Subordinate Airport Rev., Ser. A,
3.45%, 8/24/98........................... 1,965,000
2,000 Santa Barbara Cnty. TRAN's,
Ser. A, dtd. 7/1/97,
4.50%, 10/1/98........................... 2,004,897
872 Santa Clara Cnty. El Camino
Dist. Hosp. FAR,
Lease - VY Med. Ctr. Proj.,
Ser. A, VRDN*
(LC; Bayerische Vereinsbank AG),
3.60%, 6/2/98............................ 872,000
1,200 Santa Clara Cnty. FAR,
VMC Fac. Replacement Proj.,
Ser. B, VRDN*
(LC; Union Bank of Switzerland),
3.65%, 6/3/98............................ 1,200,000
1,000 South Coast Local Education Agencies
TRAN's, dtd. 7/1/97, (Insd.; MBIA),
4.50%, 6/30/98........................... 1,000,535
300 Stockton Multifamily Housing Rev.,
Mariners Pointe Assoc., Ser. A,
VRDN* (LC; Bank of America),
3.75%, 6/3/98............................ 300,000
--------------
61,509,112
--------------
Puerto Rico--1.2%
500 Puerto Rico Commonwealth,
Aqueduct & Sewer Auth. Rev., Ser. A,
7.00%, 7/1/98 (A)........................ 511,253
250 Puerto Rico Elec. PAR, Ser. M,
8.00%, 7/1/98 (A)........................ 255,812
--------------
767,065
--------------
Total Investments
(amortized cost--$62,276,177+)............. 98.6% $ 62,276,177
Other Assets in Excess
of Liabilities............................ 1.4 912,079
----- --------------
Total Net Assets ............................ 100.0% $ 63,188,256
===== ==============
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
NEW YORK MUNICIPAL PORTFOLIO
- --------------------------------------------------------------------------------
<S> <C>
New York--98.6%
Babylon IDA, RRR,
$ 600 OFS Equity Babylon Proj., VRDN*
(LC; Union Bank of Switzerland),
4.00%, 6/1/98............................ $ 600,000
1,450 Ogden Martin Sys. Babylon Inc., Ser. C,
8.50%, 7/1/98 (A)........................ 1,498,761
1,000 Battery Park City Auth. Rev.,
6.50%, 5/1/99 (A)........................ 1,024,916
345 Brookhaven GO,
Ser. A, (Insd.; MBIA),
7.00%, 11/1/98........................... 349,644
2,000 Long Island Power Authority Rev., Ser. B,
3.70%, 11/16/98.......................... 2,000,000
500 MTA, Svc. Contract,
Commuter Facs., Ser. K,
(Insd.; AMBAC),
7.50%, 7/1/98 (A)........................ 511,403
1,000 Nassau Cnty. BAN's,
Ser. B, dtd. 4/1/98,
4.00%, 8/17/98........................... 1,000,870
</TABLE>
12
<PAGE>
================================================================================
================================================================================
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal
Amount
(000) Value
- --------------------------------------------------------------------------------
<S> <C>
$ 1,000 Nassau Cnty. GO,
General Improvements,
Ser. O, (Insd.; FGIC),
5.625%, 8/1/98........................... $ 1,003,376
1,000 Nassau Cnty. TAN's,
Ser. B, dtd. 12/23/97,
4.25%, 8/31/98........................... 1,001,142
New York City GO,
700 Ser. B, VRDN*
(Insd.; FGIC),
4.10%, 6/1/98............................ 700,000
2,000 Sub. Ser. B,
(LC; Chase Manhattan Bank),
3.70%, 8/20/98........................... 2,000,000
600 Sub. Ser. B2, VRDN*
(LC; Morgan Guaranty Trust),
4.10%, 6/1/98............................ 600,000
1,700 Ser. B-Sub. Ser. B5, VRDN*
(Insd.; MBIA),
4.00%, 6/1/98............................ 1,700,000
1,500 Sub. Ser. H-3,
3.70%, 7/30/98........................... 1,500,000
800 New York City Housing
Dev. Corp. Mtg. Rev.,
Multifamily 400 W. 59th St., Ser. A2,
VRDN* (LC; Bayerische Hypotheken),
3.95%, 6/3/98............................ 800,000
New York City IDA, IDR,
1,000 JFK Field Hotel Assoc. Proj.,
VRDN* (LC; Banque Indosuez),
3.95%, 6/3/98............................ 1,000,000
1,000 La Guardia Airport Assoc. Proj.,
VRDN* (LC; Banque Indosuez),
3.95%, 6/3/98............................ 1,000,000
2,000 New York City Mun. Asst. Corp., Ser. E,
4.10%, 7/1/98............................ 2,000,430
New York City MWFA,
1,800 (LC; Canadian Imperial Bank
of Commerce),
3.70%, 6/9/98............................ 1,800,000
Water & Sewer Sys. Rev.,
1,940 Ser. A, (Insd.; FGIC),
4.00%, 6/1/98............................ 1,940,000
1,455 Ser. B, (Insd.; FGIC),
7.00%, 6/15/98 (A)....................... 1,478,731
1,000 New York City RAN's,
Ser. A, dtd. 10/15/97,
(LC; Morgan Guaranty Trust and
Westdeutsche Landesbank),
4.50%, 6/30/98........................... 1,000,504
New York City Trust CRR,
2,000 Carnegie Hall Proj.,VRDN*
(LC; Westdeutsche Landesbank),
3.70%, 6/3/98............................ 2,000,000
1,700 Museum of Broadcasting Proj.,
VRDN* (LC; Kredietbank NV),
3.90%, 6/3/98............................ 1,700,000
New York City Water & Sewer,
2,000 Ser. 3,
3.70%, 6/25/98........................... 2,000,000
800 Ser. 4,
3.45%, 6/25/98........................... 800,000
New York St. DAR,
1,000 Columbia Univ., Ser. A,
3.75%, 7/1/98............................ 1,000,181
Memorial Sloan-Kettering Cancer
Center, (LC; Chase Manhattan Bank),
Ser. 1989 A,
1,400 3.55%, 6/10/98........................... 1,400,000
1,000 3.65%, 8/11/98........................... 1,000,000
2,300 3.70%, 8/14/98........................... 2,300,000
1,325 Metropolitan Museum of Art Proj.,
Ser. B, VRDN* (Insd.; MBIA),
3.80%, 6/3/98............................ 1,325,000
505 Miriam Osborn Memorial Home Proj.,
Ser. A, VRDN*
(LC; Banque de Paribas),
4.00%, 6/3/98............................ 505,000
1,200 St. Francis Center at the Knolls,
VRDN* (LC; Banque de Paribas),
4.15%, 6/1/98............................ 1,200,000
400 New York St. EFC, PCR,
St. Wtr. Revolving Fd., Ser. E,
5.90%, 6/15/98........................... 400,303
3,600 New York St. ERDA, Gas Facs. Rev.,
Brooklyn Union Gas Proj.,
Ser. A2, VRDN*
(Insd.; MBIA),
3.95%, 6/3/98............................ 3,600,000
New York St. ERDA, PCR,
New York St. Elec. & Gas Proj.,
2,000 Ser. B,
(LC; Union Bank of Switzerland),
3.80%, 10/15/98**........................ 2,000,000
1,265 Ser. C, VRDN*
(LC; Morgan Guaranty Trust),
3.95%, 6/1/98............................ 1,265,000
900 Ser. D, VRDN*
(LC; Union Bank of Switzerland),
3.95%, 6/1/98............................ 900,000
500 Niagara Mohawk Power Corp.,
Ser. C, VRDN*
(LC; Canadian Imperial Bank
of Commerce),
4.05%, 6/1/98............................ 500,000
</TABLE>
13
<PAGE>
May 31, 1998
================================================================================
SCHEDULES OF INVESTMENTS (unaudited) (continued)
================================================================================
- --------------------------------------------------------------------------------
NEW YORK MUNICIPAL PORTFOLIO (cont'd.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal
Amount
(000) Value
- --------------------------------------------------------------------------------
<S> <C>
New York (cont'd.)
$ 1,300 Rochester Gas & Elec. Co. Proj.,
Ser. A, VRDN*
(LC; Credit Suisse Bank),
3.75%, 6/3/98............................ $ 1,300,000
875 New York St. HFA,
State University Constr., Ser. A,
8.00%, 11/1/98 (A)....................... 908,400
100 New York St. JDA, St. Gtd.,
Ser. A1-A42, VRDN*
4.05%, 6/1/98............................ 100,000
2,000 New York St. LGAC,
Ser. E, VRDN*
(LC; Canadian Imperial Bank
of Commerce),
3.90%, 6/3/98............................ 2,000,000
485 New York St. Med. Care Facs., FAR,
7.875%, 8/15/98 (A)...................... 498,539
3,000 New York St. PAR,
3.60%, 9/1/98**.......................... 3,000,000
493 Niagara Cnty. IDA, IDR,
Pyron Corp. Proj., VRDN*
(LC; Chase Manhattan Bank),
3.90%, 6/3/98............................ 493,000
500 Otsego Cnty. IDA, CFR,
Bassett Healthcare Proj.,
Ser. B, (Insd.; MBIA),
4.25%, 11/1/98........................... 501,103
1,390 Port Auth. of New York & New Jersey,
Ser. B,
3.55%, 6/10/98........................... 1,390,000
400 Rochester GO,
Ser. A, (Insd.; AMBAC),
4.25%, 9/15/98........................... 400,423
1,000 Sachem Central School Dist.
Holbrook TAN's, dtd. 7/10/97,
(CS.; St. Aid Withholding),
4.25%, 6/25/98........................... 1,000,247
1,000 Saint Lawrence Cnty. IDA, EIR,
Reynolds Metals Co. Proj.,
VRDN* (LC; Royal Bank of Canada),
4.10%, 6/3/98............................ 1,000,000
495 Schenectady GO,
Public Improvement,
(Insd.; AMBAC),
4.90%, 5/15/99........................... 500,043
825 Southampton GO,
(Insd.; FGIC),
6.95%, 6/1/98............................ 825,000
1,000 Suffolk Cnty. IDA, IDR,
Nissequogue Cogen Ptnrs. Proj.,
VRDN* (LC; Toronto-Dominion
Bank),
4.10%, 6/3/98............................ 1,000,000
450 Wallkill IDA, PCR,
Reynolds Metals Co. Proj.,
VRDN* (LC; Dresdner Bank AG),
3.80%, 6/3/98............................ 450,000
350 Yonkers GO,
Ser. C, (Insd.; FGIC),
5.50%, 8/1/98............................ 350,937
--------------
Total Investments
(amortized cost--$66,122,953+)............. 98.6% $ 66,122,953
Other Assets in Excess
of Liabilities............................ 1.4 964,249
----- --------------
Total Net Assets............................. 100.0% $ 67,087,202
===== ==============
</TABLE>
- --------------------------------------------------------------------------------
+ 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 an optional put feature. Date shown is the exercise date
of the put.
(A) Pre-refunded to the date shown. Collateralized by U.S. Government
securities and cash which are held in escrow and are used to pay principal
and interest and to retire the bonds in full at the earliest refunding
date. See accompanying notes to financial statements.
14
<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 Corp.
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
USD Unified School District
WD Water District
WDA Waste Disposal Authority
15
<PAGE>
May 31, 1998
================================================================================
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--
$2,211,314,570, $91,063,071,
$158,785,224, $62,276,177 and
$66,122,953, respectively) .... $ 2,211,314,570 $ 91,063,071 $ 158,785,224 $ 62,276,177 $ 66,122,953
Cash ............................. 45,306 103,074 303,909 83,940 316,233
Receivable from investments sold . -- -- -- 100,000 190,000
Receivable from capital stock sold 56,982 28,357 5,238 -- 8,115
Interest receivable .............. 5,281,539 45,099 1,323,304 797,609 537,946
Prepaid expenses and other assets 135,034 20,655 26,600 4,423 3,705
--------------- --------------- --------------- --------------- ---------------
Total Assets ..................... 2,216,833,431 91,260,256 160,444,275 63,262,149 67,178,952
--------------- --------------- --------------- --------------- ---------------
Liabilities
Payable for investments purchased -- -- 4,406,391 -- --
Payable for capital stock redeemed 7,032 665 16,952 -- 9,386
Investment advisory fee payable .. 98,517 4,981 8,193 3,432 3,651
Distribution fee payable ......... 60,204 2,491 4,247 1,716 1,826
Dividends payable ................ 2,879,798 114,178 116,784 45,474 48,927
Other payables and accrued
expenses ...................... 449,075 35,018 40,954 23,271 27,960
--------------- --------------- --------------- --------------- ---------------
Total Liabilities ................ 3,494,626 157,333 4,593,521 73,893 91,750
--------------- --------------- --------------- --------------- ---------------
Total Net Assets ................. $ 2,213,338,805 $ 91,102,923 $ 155,850,754 $ 63,188,256 $ 67,087,202
=============== =============== =============== =============== ===============
Composition of Net Assets
Par value ($.0001 per share,
10 billion shares
authorized for each portfolio) $ 221,338 $ 9,113 $ 15,594 $ 6,322 $ 6,711
Paid-in-capital in excess of par . 2,213,118,840 91,093,956 155,916,296 63,213,381 67,105,086
Accumulated net realized
loss on investments ........... (1,373) (146) (81,136) (31,447) (24,595)
--------------- --------------- --------------- --------------- ---------------
Total Net Assets ................. $ 2,213,338,805 $ 91,102,923 $ 155,850,754 $ 63,188,256 $ 67,087,202
=============== =============== =============== =============== ===============
Shares outstanding ............... 2,213,379,348 91,125,262 155,944,882 63,219,704 67,111,797
--------------- --------------- --------------- --------------- ---------------
Net asset value per share ........ $1.00 $1.00 $1.00 $1.00 $1.00
=============== =============== =============== =============== ===============
</TABLE>
See accompanying notes to financial statements.
16
<PAGE>
Six months ended May 31, 1998
================================================================================
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 .................................. $ 61,976,737 $ 2,718,728 $ 2,829,567 $ 1,067,409 $ 1,336,022
------------ ------------ ------------ ------------ ------------
Operating Expenses
Investment advisory fee (note 2a) ......... 4,460,655 242,533 377,942 154,640 189,470
Distribution fee (note 2b) ................ 2,725,580 121,472 196,117 77,320 94,735
Transfer and dividend
disbursing agent fees .................. 730,507 22,480 27,806 9,885 24,828
Administrative services fee ............... 541,823 23,462 38,903 15,682 16,500
Shareholder services fee .................. 221,133 10,344 16,399 6,309 8,694
Custodian fees (note 1g) .................. 75,775 17,760 21,291 7,644 8,987
Reports and notices to
shareholders ........................... 61,098 1,372 2,059 687 687
Registration fees ......................... 35,386 6,365 12,660 511 124
Audit fees ................................ 21,195 7,045 7,065 7,027 7,033
Directors' fees and expenses .............. 16,455 12,747 12,760 12,733 12,735
Legal fees ................................ 3,156 68 102 35 34
Miscellaneous ............................. 31,008 4,127 4,968 3,253 3,750
------------ ------------ ------------ ------------ ------------
Total operating expenses ............... 8,923,771 469,775 718,072 295,726 367,577
Less: Expenses offset (note 1g) ........ (1,323) (1,176) (1,963) (1,082) (1,742)
------------ ------------ ------------ ------------ ------------
Net operating expenses ................. 8,922,448 468,599 716,109 294,644 365,835
------------ ------------ ------------ ------------ ------------
Net investment income ................ 53,054,289 2,250,129 2,113,458 772,765 970,187
Net realized gain (loss)
on investments ......................... (268) 117 (872) -- --
------------ ------------ ------------ ------------ ------------
Net increase in net assets
resulting from operations ................. $ 53,054,021 $ 2,250,246 $ 2,112,586 $ 772,765 $ 970,187
============ ============ ============ ============ ============
</TABLE>
See accompanying notes to financial statements.
17
<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, 1998 (a) November 30, 1997 May 31, 1998 (a) November 30, 1997
---------------- ----------------- ---------------- -----------------
<S> <C> <C> <C> <C>
Operations
Net investment income ........................ $ 53,054,289 $ 91,488,606 $ 2,250,129 $ 4,459,722
Net realized gain (loss)
on investments ............................ (268) (1,017) 117 (125)
---------------- ---------------- ---------------- ----------------
Net increase in net assets
resulting from operations ............... 53,054,021 91,487,589 2,250,246 4,459,597
---------------- ---------------- ---------------- ----------------
Dividends and Distributions
to Shareholders
Net investment income ........................ (53,054,289) (91,488,606) (2,250,129) (4,459,722)
Net realized gains ........................... -- -- -- --
---------------- ---------------- ---------------- ----------------
Total dividends and
distributions to shareholders (53,054,289) (91,488,606) (2,250,129) (4,459,722)
---------------- ---------------- ---------------- ----------------
Capital Stock Transactions
Net proceeds from sales ...................... 7,472,725,040 13,181,820,880 331,839,251 654,106,085
Reinvestment of dividends
and distributions ......................... 53,001,870 90,685,550 2,263,581 4,444,709
Cost of shares redeemed ...................... (7,478,960,292) (12,818,513,719) (342,978,245) (659,707,954)
---------------- ---------------- ---------------- ----------------
Net increase (decrease) in
net assets from capital
stock transactions ...................... 46,766,618 453,992,711 (8,875,413) (1,157,160)
---------------- ---------------- ---------------- ----------------
Total increase (decrease) in
net assets .............................. 46,766,350 453,991,694 (8,875,296) (1,157,285)
Net Assets
Beginning of period .......................... 2,166,572,455 1,712,580,761 99,978,219 101,135,504
---------------- ---------------- ---------------- ----------------
End of period ................................ $ 2,213,338,805 $ 2,166,572,455 $ 91,102,923 $ 99,978,219
================ ================ ================ ================
</TABLE>
- ----------------
(a) Unaudited
See accompanying notes to financial statements.
18
<PAGE>
================================================================================
================================================================================
<TABLE>
<CAPTION>
------------------------------------- -------------------------------------
General Municipal Portfolio California Municipal Portfolio
------------------------------------- -------------------------------------
Six months ended Year ended Six months ended Year ended
May 31, 1998 (a) November 30, 1997 May 31, 1998 (a) November 30, 1997
---------------- ----------------- ---------------- -----------------
<S> <C> <C> <C> <C>
Operations
Net investment income ........................ $ 2,113,458 $ 3,642,482 $ 772,765 $ 1,517,212
Net realized gain (loss)
on investments ............................ (872) (1,853) -- (593)
------------- ------------- ------------- -------------
Net increase in net assets
resulting from operations ............... 2,112,586 3,640,629 772,765 1,516,619
------------- ------------- ------------- -------------
Dividends and Distributions
to Shareholders
Net investment income ........................ (2,113,458) (3,642,482) (772,765) (1,517,212)
Net realized gains ........................... -- -- -- --
------------- ------------- ------------- -------------
Total dividends and
distributions to shareholders (2,113,458) (3,642,482) (772,765) (1,517,212)
------------- ------------- ------------- -------------
Capital Stock Transactions
Net proceeds from sales ...................... 566,863,224 910,670,497 231,361,509 389,323,623
Reinvestment of dividends
and distributions ......................... 2,105,490 3,612,892 770,271 1,513,811
Cost of shares redeemed ...................... (550,088,733) (899,591,683) (224,656,857) (388,484,165)
------------- ------------- ------------- -------------
Net increase (decrease) in
net assets from capital
stock transactions ...................... 18,879,981 14,691,706 7,474,923 2,353,269
------------- ------------- ------------- -------------
Total increase (decrease) in
net assets .............................. 18,879,109 14,689,853 7,474,923 2,352,676
Net Assets
Beginning of period .......................... 136,971,645 122,281,792 55,713,333 53,360,657
------------- ------------- ------------- -------------
End of period ................................ $ 155,850,754 $ 136,971,645 $ 63,188,256 $ 55,713,333
============= ============= ============= =============
<CAPTION>
---------------------------------------
New York Municipal Portfolio
---------------------------------------
Six months ended Year ended
May 31, 1998 (a) November 30, 1997
---------------- ------------------
<S> <C> <C>
Operations
Net investment income ........................ $ 970,187 $ 1,701,134
Net realized gain (loss)
on investments ............................ -- (794)
------------- -------------
Net increase in net assets
resulting from operations ............... 970,187 1,700,340
------------- -------------
Dividends and Distributions
to Shareholders
Net investment income ........................ (970,187) (1,701,134)
Net realized gains ........................... -- --
------------- -------------
Total dividends and
distributions to shareholders (970,187) (1,701,134)
------------- -------------
Capital Stock Transactions
Net proceeds from sales ...................... 255,623,816 452,234,876
Reinvestment of dividends
and distributions ......................... 980,993 1,646,954
Cost of shares redeemed ...................... (262,756,323) (440,638,442)
------------- -------------
Net increase (decrease) in
net assets from capital
stock transactions ...................... (6,151,514) 13,243,388
------------- -------------
Total increase (decrease) in
net assets .............................. (6,151,514) 13,242,594
Net Assets
Beginning of period .......................... 73,238,716 59,996,122
------------- -------------
End of period ................................ $ 67,087,202 $ 73,238,716
============= =============
</TABLE>
- ----------
(a) Unaudited
See accompanying notes to financial statements.
19
<PAGE>
May 31, 1998
================================================================================
NOTES TO FINANCIAL STATEMENTS (unaudited)
================================================================================
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 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) Securities Transactions and Other Income
Securities transactions are accounted for on the trade date. Cost of
securities sold is determined on the basis of identified cost. Interest income
is accrued as earned. Premiums are amortized and 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 at least 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 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.
(f) Expense Allocations
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.
(g) Expenses Offset
The Fund benefits from an expense offset arrangement with its custodian
bank where uninvested cash balances earn credits that reduce monthly expenses.
Had these cash balances been invested in income producing securities, they would
have generated income for the Fund.
20
<PAGE>
================================================================================
================================================================================
2. Investment Advisory Fee and Distribution Fee
(a) Under the Investment Advisory Agreement, each Portfolio pays the
Adviser a monthly investment advisory fee at the annual rate of .50% on 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 waive and/or reimburse a Portfolio to the
extent that total operating expenses of the Portfolio exceed 1.00% of its
average daily net assets (net of expenses offset) for any fiscal year. For the
six months ended May 31, 1998, there were no waivers or reimbursements.
(b) Under the Distribution Assistance Plan, each Portfolio pays the Adviser
a monthly fee at an annual rate of .25% of its 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.
3. Purchases and Sales of Securities
For the six months ended May 31, 1998, purchases and sales/maturities of
investment securities were: Primary $8,942,395,873 and $8,943,396,496,
respectively; Government $939,783,081 and $950,991,669, respectively; General
$478,708,785 and $454,937,600, respectively; California $153,136,038 and
$145,279,000, respectively; and New York $203,204,521 and $209,685,500,
respectively.
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 May 31, 1998, major industry concentrations
were as follows: Banking--39.1%, Brokerage--11.1%, Automotive--9.2%,
Finance--8.1% and Sovereign--7.3%. 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. Effective July 1, 1998, and in accordance with Rule
2a-7, as amended, single state funds are required to be diversified with respect
to 75% of their total assets. 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.
21
<PAGE>
================================================================================
FINANCIAL HIGHLIGHTS (For a share outstanding throughout each period)
================================================================================
<TABLE>
<CAPTION>
INCOME FROM DIVIDENDS
INVESTMENT OPERATIONS AND DISTRIBUTIONS
--------------------------------------------------- -----------------------------------------------
Dividends to
Net Asset Net Total Shareholders Distributions Total Dividends
Value, Net Realized Income from from Net to Shareholders and Distributions
Beginning Investment Gain/(Loss) Investment Investment from Net to
of Period Income on Investments Operations Income Realized Gains Shareholders
Primary Portfolio
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Six months ended
May 31, 1998 (5) $1.000 $0.024 ($0.000) $0.024 ($0.024) -- ($0.024)
Year ended Nov. 30, 1997 1.000 0.047 (0.000) 0.047 (0.047) -- (0.047)
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)
Government Portfolio
- ------------------------------------------------------------------------------------------------------------------------------------
Six months ended
May 31, 1998 (5) $1.000 $0.023 $0.000 $0.023 ($0.023) -- ($0.023)
Year ended Nov. 30, 1997 1.000 0.045 (0.000) 0.045 (0.045) -- (0.045)
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) -- (0.022)
<CAPTION>
RATIOS TO
AVERAGE
NET ASSETS
--------------------------------
Net Asset Net Assets,
Value, End of Net Net
End of Total Period Operating Investment
Period Return* (millions) Expenses(3) Income
Primary Portfolio
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Six months ended
May 31, 1998 (5) $1.000 4.98%(4) $2,213.3 0.82%(2,4) 4.87%(2,4)
Year ended Nov. 30, 1997 1.000 4.85% 2,166.6 0.85% 4.75%
Year ended Nov. 30, 1996 1.000 4.69% 1,712.6 0.91% 4.60%
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%
Government Portfolio
- ------------------------------------------------------------------------------------------------------------------------------------
Six months ended $1.000 4.73%(4) $91.1 0.97%(2,4) 4.63%(2,4)
May 31, 1998 (5) 1.000 4.60% 100.0 0.98%(1) 4.51%(1)
Year ended Nov. 30, 1997 1.000 4.51% 101.1 1.00%(1) 4.41%(1)
Year ended Nov. 30, 1996 1.000 5.02% 108.6 1.00%(1) 4.91%(1)
Year ended Nov. 30, 1995 1.000 3.12% 113.2 0.95%(1) 3.08%(1)
Year ended Nov. 30, 1994 1.000 2.26% 127.9 1.00% 2.24%
Year ended Nov. 30, 1993
</TABLE>
(1) During the periods noted above, the Adviser waived a portion of its fees.
If such waivers had not been in effect, the ratios of net operating
expenses to average net assets and the ratios of net investment income to
average net assets would have been 0.99% and 4.50%, respectively, for the
year ended November 30, 1997, 1.00% and 4.41%, respectively, for the year
ended November 30, 1996, 1.02% and 4.89%, respectively, for the year ended
November 30, 1995 and 0.97% and 3.06%, respectively, for the year ended
November 30, 1994.
- --------------------------------------------------
(2) Average net assets for the six months ended May 31, 1998 were
$2,186,454,641 and $97,444,771 for the Primary and Government Portfolios,
respectively.
(3) For fiscal periods ending after September 1, 1995, the ratios are
calculated to include expenses offset by earnings credits from a custodian
bank ( See Note 1g in Notes to Financial Statements).
(4) Annualized
(5) Unaudited
* Assumes reinvestment of all dividends and distributions.
22
<PAGE>
================================================================================
================================================================================
<TABLE>
<CAPTION>
INCOME FROM
INVESTMENT OPERATIONS
---------------------------------------------------
Dividends to
Net Asset Net Total Shareholders
Value, Net Realized Income 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, 1998 (5) $1.000 $0.013 ($0.000) $0.013 ($0.013) --
Year ended Nov. 30, 1997 1.000 0.027 (0.000) 0.027 (0.027) --
Year ended Nov. 30, 1996 1.000 0.025 0.000 0.025 (0.025) --
Year ended Nov. 30, 1995 1.000 0.031 0.000 0.031 (0.031) --
Year ended Nov. 30, 1994 1.000 0.020 (0.000) 0.020 (0.020) --
Year ended Nov. 30, 1993 1.000 0.017 (0.000) 0.017 (0.017) --
<CAPTION>
RATIOS TO
AVERAGE
NET ASSETS
-----------------------------
Net Assets,
Net Asset End of Net Net
Value, End Total Period Operating Investment
of Period Return* (millions) Expenses(3) Income
General Municipal Portfolio
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Six months ended
May 31, 1998 (5) $1.000 2.73%(4) $155.9 0.92%(2,4) 2.69%(2,4)
Year ended Nov. 30, 1997 1.000 2.74% 137.0 0.96%(1) 2.70%(1)
Year ended Nov. 30, 1996 1.000 2.56% 122.3 0.99%(1) 2.53%(1)
Year ended Nov. 30, 1995 1.000 3.11% 116.0 0.93%(1) 3.07%(1)
Year ended Nov. 30, 1994 1.000 2.04% 108.7 0.90%(1) 2.01%(1)
Year ended Nov. 30, 1993 1.000 1.74% 109.7 0.98%(1) 1.73%(1)
</TABLE>
(1) During the periods noted above, the Adviser waived a portion of its fees.
If such waivers had not been in effect, the ratios of net operating
expenses to average net assets and the ratios of net investment income to
average net assets would have been 0.96% and 2.70, respectively, for the
year ended November 30, 1997, 0.99% and 2.53%, respectively, for the year
ended November 30, 1996, 1.02% and 2.98%, respectively, for the year ended
November 30, 1995, 1.01% and 1.90%, respectively, for the year ended
November 30, 1994 and 1.01% and 1.70%, respectively, for the year ended
November 30, 1993.
<TABLE>
<CAPTION>
INCOME FROM
INVESTMENT OPERATIONS
---------------------------------------------------
Dividends to
Net Asset Net Total Shareholders
Value, Net Realized Income 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, 1998 (5) $1.000 $0.012 -- $0.012 ($0.012) --
Year ended Nov. 30, 1997 1.000 0.026 ($0.000) 0.026 (0.026) --
Year ended Nov. 30, 1996 1.000 0.024 -- 0.024 (0.024) --
Year ended Nov. 30, 1995 1.000 0.031 (0.008) 0.023 (0.031) $0.008
Year ended Nov. 30, 1994 1.000 0.020 (0.000) 0.020 (0.020) --
Year ended Nov. 30, 1993 1.000 0.017 (0.000) 0.017 (0.017) --
<CAPTION>
RATIOS TO
AVERAGE
NET ASSETS
---------------------------
Net Assets,
Net Asset End of Net Net
Value, End Total Period Operating Investment
of Period Return* (millions) Expenses(3) Income
California Municipal Portfolio
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Six months ended
May 31, 1998 (5) $1.000 2.53%(4) $63.2 0.96%(2,4) 2.50%(2,4)
Year ended Nov. 30, 1997 1.000 2.68% 55.7 0.90%(1) 2.64%(1)
Year ended Nov. 30, 1996 1.000 2.42% 53.4 0.85%(1) 2.42%(1)
Year ended Nov. 30, 1995 1.000 3.10% 75.9 0.82%(1) 3.05%(1)
Year ended Nov. 30, 1994 1.000 1.99% 61.3 0.85%(1) 1.99%(1)
Year ended Nov. 30, 1993 1.000 1.76% 62.3 0.85%(1) 1.75%(1)
</TABLE>
(1) During the periods noted above, the Adviser waived a portion of its fees.
If such waivers had not been in effect, the ratios of net operating
expenses to average net assets and the ratios of net investment income to
average net assets would have been 0.96% and 2.58%, respectively, for the
year ended November 30, 1997, 0.97% and 2.30%, respectively, for the year
ended November 30, 1996, 0.95% and 2.92%, respectively, for the year ended
November 30, 1995, 0.97% and 1.87%, respectively, for the year ended
November 30, 1994 and 0.98% and 1.62%, respectively, for the year ended
November 30, 1993.
<TABLE>
<CAPTION>
INCOME FROM
INVESTMENT OPERATIONS
---------------------------------------------------
Dividends to
Net Asset Net Total Shareholders
Value, Net Realized Income from from Net Capital
Beginning Investment Gain/(Loss) Investment Investment Contribution
of Period Income on Investments Operations Income by Adviser
New York Municipal Portfolio
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Six months ended
May 31, 1998 (5) $1.000 $0.013 -- $0.013 ($0.013) --
Year ended Nov. 30, 1997 1.000 0.026 ($0.000) 0.026 (0.026) --
Year ended Nov. 30, 1996 1.000 0.025 -- 0.025 (0.025) --
Year ended Nov. 30, 1995 1.000 0.030 0.000 0.030 (0.030) --
Year ended Nov. 30, 1994 1.000 0.019 (0.000) 0.019 (0.019) --
Year ended Nov. 30, 1993 1.000 0.016 (0.000) 0.016 (0.016) --
<CAPTION>
RATIOS TO
AVERAGE
NET ASSETS
----------------------------
Net Assets,
Net Asset End of Net Net
Value, End Total Period Operating Investment
of Period Return* (millions) Expenses(3) Income
New York Municipal Portfolio
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Six months ended
May 31, 1998 (5) $1.000 2.60%(4) $67.1 0.97%(2,4) 2.56%(2,4)
Year ended Nov. 30, 1997 1.000 2.66% 73.2 0.98%(1) 2.63%(1)
Year ended Nov. 30, 1996 1.000 2.50% 60.0 0.97%(1) 2.45%(1)
Year ended Nov. 30, 1995 1.000 3.07% 52.3 0.79%(1) 3.02%(1)
Year ended Nov. 30, 1994 1.000 1.92% 48.0 0.82%(1) 1.90%(1)
Year ended Nov. 30, 1993 1.000 1.66% 42.2 0.79%(1) 1.64%(1)
</TABLE>
(1) During the periods noted above, the Adviser waived a portion of its fees.
If such waivers had not been in effect, the ratios of net operating
expenses to average net assets and the ratios of net investment income to
average net assets would have been 0.98% and 2.62%, respectively, for the
year ended November 30, 1997, 0.98% and 2.44%, respectively, for the year
ended November 30, 1996, 1.00% and 2.81%, respectively, for the year ended
November 30, 1995, 1.01% and 1.71%, respectively, for the year ended
November 30, 1994 and 1.03% and 1.40%, respectively, for the year ended
November 30, 1993.
- ---------------------------------------------
(2) Average net assets for the six months ended May 31, 1998 were $157,324,461,
$62,025,985 and $75,996,133 for the General, California and New York
Municipal Portfolios, respectively.
(3) For fiscal periods ending after September 1, 1995, the ratios are
calculated to include expenses offset by earnings credits from a custodian
bank ( See Note 1g in Notes to Financial Statements).
(4) Annualized
(5) Unaudited
* Assumes reinvestment of all dividends and distributions.
23
<PAGE>
================================================================================
OCC OCC
------------- -------------
CASH RESERVES CASH RESERVES
------------- -------------
================================================================================
<TABLE>
<S> <C> <C>
Directors and Officers
Joseph M. La Motta Director, President
Paul Y. Clinton Director
Thomas W. Courtney Director o Primary Portfolio
Lacy B. Herrmann Director o Government Portfolio
George Loft Director o General Municipal Portfolio
Everett Alcenat Vice President o California Municipal Portfolio
Robert J. Bluestone Vice President o New York Municipal Portfolio
Bernard H. Garil Vice President
John C. Giusio, Jr. Vice President
Matthew Greenwald Vice President
Benjamin Gutstein Vice President
Susan A. Murphy Vice President
Sheldon Siegel Treasurer
Richard L. Peteka Assistant Treasurer
Deborah Kaback Secretary Semi-Annual Report
Maria Camacho Assistant Secretary
Thomas E. Duggan Assistant Secretary May 31, 1998
Investment Adviser
OpCap Advisors
Two World Financial Center
New York, NY 10281
Distributor
OCC Distributors
Two World Financial Center
New York, NY 10281
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........... 16
Statements of Operations....................... 17
Statements of Changes in Net Assets............ 18
Notes to Financial Statements.................. 20 Managed by
Financial Highlights........................... 22 OpCap Advisors
- ----------------------------------------------------
</TABLE>
This report is authorized for distribution only to shareholders and to others
who have received a copy of the prospectus.
================================================================================
