<PAGE>
OCC CASH RESERVES
January 14, 1999
Dear Shareholder:
In the fiscal year ended November 30, 1998, the Portfolios of the OCC Cash
Reserves continued to meet their objectives of providing safety of principal,
liquidity and maximum current income through investments in taxable and
tax-exempt securities. Detailed information about each of the fund's five
Portfolios is presented in the Investment Review and financial statements that
follow.
During the last half of the year the Federal Reserve lowered the Federal
Funds Rate, the interest rate banks charge one another for overnight loans, from
5.50% to 4.75%. This was done in three stages, one of which occurred between
Federal Open Market Committee Meetings. The last time the Fed reduced interest
rates between meetings was in 1994. These moves demonstrated the Fed's concern
that the economic problems of many nations around the world and the volatility
in both U.S. and foreign equity markets could exacerbate the softening of the
U.S. economy. The lower Federal Funds Rate seems to have calmed U.S. Markets for
the present and at their meeting on December 22nd the Fed did not find it
necessary to take any further action. The Fed will continue to carefully monitor
worldwide economic activity, especially the levels of unemployment and inflation
here in the U.S.
Regardless of what the Fed may do in the future, we will continue to seek to
provide after-tax income in excess of the rate of inflation while preserving our
shareholders' capital.
Enclosed with this Annual Report is important tax information about the
Government Portfolio and each of the Municipal Portfolios which may prove
valuable in reducing your state or local tax liability. Please share this
information with your tax adviser.
We at OCC Cash Reserves and OpCap Advisors, the investment adviser to the Fund,
want to thank you for your support and look forward to continuing 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.
Annual Review
During the fiscal year ended November 30, 1998, the daily dividends of the
Primary Portfolio averaged 4.79% on an annual basis or 4.90% compounded monthly.
At the fiscal year-end the Portfolio had a seven-day compounded yield of 4.55%,
down from 4.92% at the beginning of the year. The average maturity of the
Portfolio during the year ranged from a low of 46 days to a high of 70 days and
on November 30, 1998 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 4.53% on an annual basis or
4.63% compounded monthly for the fiscal year ended November 30, 1998. On
November 30, 1998, the seven-day compounded yield of the Portfolio was 4.21%,
down from 4.71% at November 30, 1997. The average maturity of the Portfolio
during the year ranged from 30 days to 68 days. On November 30, 1998, it was 46
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 2.63% on an
annual basis and 2.66% compounded monthly during the fiscal year ended November
30, 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 4.40%. The seven-day compounded yield on
November 30, 1998 was 2.43% compared with the beginning of the fiscal year when
it was 2.96%. Average maturity for the Portfolio ranged from 35 days to 80 days
and on November 30, 1998 was 59 days.
California Municipal Portfolio
Objective
Seeks safety of principal, liquidity and maximum current income that is exempt
from Federal and California personal income taxes, from investments in a
diversified portfolio of high-grade municipal money market securities. The
California municipal securities in which the Portfolio invests include municipal
notes, short-term municipal bonds, short-term discount notes and participation
interests in the foregoing.
Annual Review
For the year ended November 30, 1998, the daily dividend averaged 2.37% on an
annual basis and 2.39% 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 9.3%, respectively, the monthly compounded return would be equivalent
to a taxable return of 4.36%. Between November 30, 1997 and November 30, 1998,
the seven-day compounded yield fell from 2.81% to 2.07%. The average maturity of
the securities in the Portfolio ranged from 21 days to 80 days and was 51 days
on November 30, 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.
Annual Review
In the year ended November 30, 1998, 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%, 6.85% and 4.46%, respectively. The seven-day compounded
yield fell from 2.86% to 2.18% between the 1997 and 1998 fiscal year-ends. The
average maturity of the Portfolio ranged between 28 days to 57 days. On November
30, 1998, it was 48 days.
3
<PAGE>
November 30, 1998
================================================================================
SCHEDULES OF INVESTMENTS
================================================================================
- --------------------------------------------------------------------------------
PRIMARY PORTFOLIO
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Principal
Amount
(000) Value
- --------------------------------------------------------------------------------
U.S. Government Agencies--7.3%
$ 67,300 Federal Home Loan Bank,
5.00%-5.14%,
10/8/99-11/5/99................................. $ 67,300,000
5,108 Federal Home Loan
Mortgage Corporation,
5.10%, 12/1/98.................................. 5,108,000
38,000 Federal National
Mortgage Association,
5.22%, 10/7/99.................................. 38,000,000
77,000 Student Loan
Marketing Association,
5.10%-5.20%,
9/30/99-10/15/99................................ 77,000,000
------------
Total U.S. Government Agencies
(amortized cost--$187,408,000)............................ 187,408,000
------------
Bank Notes--1.9%
50,000 First Union National Bank NC,
5.195%, 2/16/99
(amortized cost--$50,000,000)................... 50,000,000
------------
Certificates of Deposit--10.7%
40,000 Bank of Nova Scotia,
5.46%-5.59%,
12/4/98-12/28/98................................ 40,000,000
80,000 Canadian Imperial Bank of Commerce,
4.98%-5.56%,
12/2/98-4/5/99.................................. 80,000,000
25,000 National Westminster Bank plc,
5.22%, 1/20/99.................................. 25,000,000
60,000 Rabobank Nederland NV,
5.61%-5.65%,
12/7/98-12/28/98................................ 60,000,000
20,000 Skandinaviska Enskilda Banken
Funding Inc.,
5.16%, 12/14/98................................. 20,000,072
50,000 Toronto-Dominion Holdings USA Inc.,
5.58%-5.59%,
12/28/98-2/16/99................................ 50,000,000
------------
Total Certificates of Deposit
(amortized cost--$275,000,072)............................ 275,000,072
------------
- --------------------------------------------------------------------------------
Principal
Amount
(000) Value
- --------------------------------------------------------------------------------
Commercial Paper--77.9%
$ 80,000 Abbey National North America,
5.08%-5.44%,
12/28/98-2/24/99................................ $ 79,367,774
17,000 American Express Credit Corp.,
4.88%, 12/24/98................................. 16,946,998
80,000 American General Finance Corp.,
5.16%-5.22%,
1/28/99-2/11/99................................. 79,232,225
25,000 American Home Products Corp.,
5.25%, 12/1/98.................................. 25,000,000
75,000 Associates Corporation
of North America,
5.05%-5.41%,
12/9/98-12/22/98................................ 74,847,569
25,000 Barclays Bank plc,
4.92%, 12/16/98**............................... 24,999,699
60,000 BP America Inc.,
5.30%-5.42%,
12/1/98-12/3/98................................. 59,992,472
74,350 British Columbia (Province of),
4.57%-5.43%,
12/9/98-7/20/99................................. 73,029,775
52,000 Canadian Wheat Board,
5.14%-5.45%,
12/18/98-3/11/99................................ 51,608,681
20,000 Coca-Cola Co.,
5.40%, 12/7/98.................................. 19,982,000
103,000 Daimler-Benz North America Corp.,
4.70%-5.42%,
12/2/98-4/26/99................................. 102,365,050
100,000 Diageo Capital plc,
5.01%-5.46%,
12/4/98-12/29/98................................ 99,850,972
39,338 Dover Corp.,
5.18%-5.40%,
12/2/98-12/8/98................................. 39,312,494
100,000 First Chicago Financial Corp.,
5.06%-5.09%,
12/11/98-2/25/99................................ 99,017,117
40,000 Ford Credit Europe plc,
5.10%, 2/3/99................................... 39,637,333
50,000 Ford Motor Credit Co.,
5.43%, 12/31/98................................. 49,773,750
65,000 General Electric Capital Corp.,
5.13%-5.48%,
12/23/98-2/22/99................................ 64,511,242
30,000 General Electric Co.,
5.13%, 12/30/98................................. 29,876,025
4
<PAGE>
================================================================================
================================================================================
- --------------------------------------------------------------------------------
Principal
Amount
(000) Value
- --------------------------------------------------------------------------------
Commercial Paper (cont'd.)
$ 100,000 General Motors Acceptance Corp.,
5.01%-5.48%,
12/16/98-1/27/99................................ $ 99,435,318
20,000 Glaxo Wellcome plc,
5.02%, 12/21/98................................. 19,944,222
90,000 Halifax plc,
4.77%-5.17%,
2/4/99-3/22/99.................................. 88,983,282
95,000 Household Finance Corp.,
4.95%-5.44%,
12/10/98-12/30/98............................... 94,750,769
72,300 IBM Corp.,
4.90%-5.47%,
12/7/98-12/21/98................................ 72,143,559
25,000 Kingdom of Sweden,
5.40%, 12/21/98................................. 24,925,000
70,000 Merrill Lynch & Co. Inc.,
5.12%-5.35%,
12/10/98-1/26/99................................ 69,614,195
25,000 Morgan (J.P.) & Co. Inc.,
5.46%, 12/17/98................................. 24,939,333
20,000 NationsBank Corp.,
5.48%, 3/8/99................................... 19,704,689
85,000 Norwest Financial Inc.,
5.16%-5.40%,
12/15/98-2/22/99................................ 84,390,449
50,000 Oesterreichische Kontrollbank AG,
5.00%-5.16%,
1/25/99-2/22/99................................. 49,514,722
46,490 Prudential Funding Corp.,
5.21%-5.31%,
1/19/99-2/4/99.................................. 46,099,507
60,000 Skandinaviska Enskilda Banken
Funding Inc.,
4.85%-5.16%,
12/7/98-12/31/98................................ 59,852,950
30,000 Svenska Handelsbanken Inc.,
5.32%-5.50%,
12/9/98-12/17/98................................ 29,940,489
80,000 Swedish Export Credit Corp.,
4.69%-5.09%,
12/28/98-4/19/99................................ 79,059,221
25,000 Toronto-Dominion Holdings USA Inc.,
5.47%, 12/21/98................................. 24,924,028
- --------------------------------------------------------------------------------
Principal
Amount
(000) Value
- --------------------------------------------------------------------------------
$ 71,700 US Borax & Chemical Corp.,
5.17%-5.39%,
12/14/98-2/8/99................................ $ 71,355,749
14,600 USAA Capital Corp.,
5.12%, 12/18/98................................ 14,564,700
--------------
Total Commercial Paper
(amortized cost--$2,003,493,358)......................... $2,003,493,358
--------------
Total Investments
(amortized cost--$2,515,901,430+).................. 97.8% $2,515,901,430
Other Assets in Excess
of Liabilities..................................... 2.2 56,537,224
----- --------------
Total Net Assets.....................................100.0% $2,572,438,654
===== ==============
- --------------------------------------------------------------------------------
GOVERNMENT PORTFOLIO
- --------------------------------------------------------------------------------
U.S. Government Agencies--99.3%
Federal Farm Credit Bank--3.8%
$ 1,500 4.76%, 12/30/98................................. $ 1,494,248
100 4.99%, 12/11/98................................. 99,861
145 5.35%, 12/14/98................................. 144,720
2,534 5.36%, 12/23/98................................. 2,525,700
------------
Total Federal Farm Credit Bank
(amortized cost--$4,264,529)............................. 4,264,529
------------
Federal Home Loan Bank--30.9%
4,000 4.74%, 12/23/98................................. 3,988,413
120 4.76%, 12/9/98.................................. 119,873
5,000 4.76%, 12/18/98................................. 4,988,761
1,077 4.77%, 12/11/98................................. 1,075,573
1,400 5.00%, 12/30/98................................. 1,394,361
1,720 5.02%, 12/23/98................................. 1,714,723
2,000 5.03%, 12/28/98................................. 1,992,455
1,382 5.03%, 12/30/98................................. 1,376,400
5,000 5.04%, 12/28/98................................. 4,981,100
5,000 5.05%, 12/9/98.................................. 4,994,389
1,700 5.07%, 10/8/99.................................. 1,700,000
1,000 5.14%, 11/5/99.................................. 1,000,000
2,100 5.37%, 12/23/98................................. 2,093,109
3,000 5.38%, 12/14/98................................. 2,994,172
245 5.38%, 12/31/98................................. 243,902
------------
Total Federal Home Loan Bank
(amortized cost--$34,657,231)............................ 34,657,231
------------
5
<PAGE>
November 30, 1998
================================================================================
SCHEDULES OF INVESTMENTS (continued)
================================================================================
- --------------------------------------------------------------------------------
GOVERNMENT PORTFOLIO (cont'd.)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Principal
Amount
(000) Value
- --------------------------------------------------------------------------------
Federal Home Loan Mortgage Corporation--38.2%
$ 60 4.75%, 12/15/98.................................. $ 59,889
2,800 4.75%, 12/22/98.................................. 2,792,242
7,500 4.75%, 12/28/98.................................. 7,473,281
5,000 4.76%, 12/21/98.................................. 4,986,778
5,000 4.76%, 12/22/98.................................. 4,986,117
100 4.80%, 12/11/98.................................. 99,867
2,000 4.81%, 12/23/98.................................. 1,994,121
2,100 4.92%, 2/22/99................................... 2,076,179
2,000 5.03%, 12/2/98................................... 1,999,720
4,000 5.03%, 12/28/98.................................. 3,984,910
5,000 5.03%, 12/30/98.................................. 4,979,740
2,800 5.035%, 12/14/98................................. 2,794,909
444 5.05%, 12/8/98................................... 443,564
326 5.05%, 1/19/99................................... 323,759
3,000 5.28%, 12/18/98.................................. 2,992,520
875 5.36%, 12/2/98................................... 874,870
------------
Total Federal Home Loan Mortgage Corporation
(amortized cost--$42,862,466)............................. 42,862,466
------------
Federal National Mortgage Association--19.8%
3,000 4.72%, 1/19/99................................... 2,980,727
3,000 4.90%, 2/10/99................................... 2,971,008
1,333 4.92%, 2/19/99................................... 1,318,426
2,000 4.99%, 3/15/99................................... 1,971,169
2,000 5.22%, 10/7/99................................... 2,000,000
1,500 5.26%, 12/15/98.................................. 1,496,932
2,500 5.36%, 12/22/98.................................. 2,492,183
700 5.36%, 12/30/98.................................. 696,977
1,050 5.37%, 12/22/98.................................. 1,046,711
5,200 5.39%, 12/7/98................................... 5,195,329
------------
Total Federal National Mortgage Association
(amortized cost--$22,169,462)............................. 22,169,462
------------
Student Loan Marketing Association--6.6%
4,400 5.00%, 12/2/98................................... 4,399,389
1,000 5.10%, 10/15/99.................................. 1,000,000
2,000 5.20%, 9/30/99................................... 2,000,000
------------
Total Student Loan Marketing Association
(amortized cost--$7,399,389)............................... 7,399,389
------------
Total Investments
(amortized cost--$111,353,077+)..................... 99.3% $111,353,077
Other Assets in Excess
of Liabilities...................................... 0.7 792,832
----- ------------
Total Net Assets..................................... 100.0% $112,145,909
===== ============
- --------------------------------------------------------------------------------
GENERAL MUNICIPAL PORTFOLIO
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Principal
Amount
(000) Value
- --------------------------------------------------------------------------------
Alabama--2.5%
$ 450 Alabama St. PSA,
4.10%, 12/1/98.................................. $ 450,000
690 Birmingham Baptist Med. Ctr.,
Special Care Facilities FAR,
Senior Living Cmntys. Proj., Ser. A,
VRDN* (LC; Fuji Bank Ltd.
and Banco de Santander SA),
3.25%, 12/2/98.................................. 690,000
1,000 Mobile GO,
(Insd.; MBIA),
3.70%, 2/15/99.................................. 999,968
2,200 Montgomery PCR,
Ser. 1990,
3.45%, 12/3/98.................................. 2,200,000
------------
4,339,968
------------
Alaska--3.8%
3,600 Alaska St. HF Corp.,
Ser. A, VRDN*
3.20%, 12/2/98.................................. 3,600,000
Valdez Marine Term. Rev.,
Arco Trans. Proj.,
1,000 3.35%, 2/4/99................................... 1,000,000
1,500 Ser. A,
3.55%, 12/7/98.................................. 1,500,000
400 Ser. B, VRDN*
3.30%, 12/1/98.................................. 400,000
------------
6,500,000
------------
Arizona--3.1%
1,000 Arizona Edl. Ln. Mktg. Corp.,
ELR, Ser. A, VRDN*
(LC; Dresdner Bank AG),
3.20%, 12/2/98.................................. 1,000,000
Mesa Muni. Dev. Corp.,
Ser. 1985,
(LC; Westdeutsche Landesbank),
1,000 3.00%, 2/10/99.................................. 1,000,000
3,400 3.20%, 12/3/98.................................. 3,400,000
------------
5,400,000
------------
California-3.3%
200 California SCD Auth. Rev. Ctfs. Partn.,
John Muir/Mt. Diablo Hlth.,
VRDN* (Insd.; AMBAC),
3.00%, 12/1/98.................................. 200,000
6
<PAGE>
================================================================================
================================================================================
- --------------------------------------------------------------------------------
Principal
Amount
(000) Value
- --------------------------------------------------------------------------------
Los Angeles Cnty. TRAN's,
$ 1,500 4.25%, 6/30/99.................................. $ 1,505,938
2,500 Ser. A,
4.50%, 6/30/99.................................. 2,511,550
1,500 Santa Barbara Cnty. TRAN's,
4.50%, 6/30/99.................................. 1,506,939
------------
5,724,427
------------
Colorado--4.5%
2,000 Colorado St. TRAN's, Ser. A,
4.00%, 6/25/99.................................. 2,004,950
Denver City & Cnty.,
Colorado Airport Sys., Ser. 1997A,
(LC; Bayerische Landesbank
Girozentrale),
1,000 3.25%, 12/1/98................................. 1,000,000
2,800 3.60%, 12/2/98................................. 2,800,000
2,000 3.60%, 12/7/98................................. 2,000,000
------------
7,804,950
------------
Connecticut--1.7%
3,000 New Haven BAN's,
3.85%, 2/1/99................................... 3,001,483
------------
Florida--4.4%
1,000 Broward Cnty. School Dist. GO,
7.125%, 2/15/99 (A)............................. 1,027,997
400 Dade Cnty. IDA,
Florida Pwr. & Lt. Co., VRDN*
3.30%, 12/1/98.................................. 400,000
3,000 Gainesville Util. Sys. Rev.,
3.35%, 2/1/99................................... 3,000,000
1,800 Hillsborough Cnty. IDA, PCR,
Tampa Elec. Co. Proj., VRDN*
3.30%, 12/1/98.................................. 1,800,000
1,250 Putnam Cnty. DA, PCR,
Seminole Elec. Co. Proj.,
Ser. H-1, VRDN*
3.20%, 12/2/98.................................. 1,250,000
------------
7,477,997
------------
Georgia--1.2%
2,000 Georgia Municipal Electric Auth., Ser. B,
(LC; Morgan Guaranty Trust),
3.00%, 3/17/99.................................. 2,000,000
------------
Hawaii-0.6%
1,000 Hawaii St. Secondary Mkt. Svcs. Corp.,
SLR, Ser. II, VRDN*
(LC; National Westminster Bank plc),
3.25%, 12/2/98.................................. 1,000,000
------------
- --------------------------------------------------------------------------------
Principal
Amount
(000) Value
- --------------------------------------------------------------------------------
Illinois--1.8%
$ 1,000 Chicago Park Dist. TAN's,
4.30%, 9/17/99.................................. $ 1,007,736
300 Cicero GO, Tax Increment,
Ser. A, (Insd.; AMBAC),
4.45%, 12/1/98.................................. 300,000
1,800 Joliet Regional Port Dist.,
Exxon Proj., VRDN*
3.30%, 12/1/98.................................. 1,800,000
------------
3,107,736
------------
Indiana--2.3%
City of Indianapolis Gas & Util. Sys.,
2,000 3.05%, 1/13/99.................................. 2,000,000
2,000 3.30%, 12/8/98.................................. 2,000,000
------------
4,000,000
------------
Kansas--0.6%
1,035 Johnson Cnty. GO,
International Improvements, Ser. A,
3.60%, 9/1/99................................... 1,036,864
------------
Kentucky--1.3%
200 Boone Cnty. PCR,
Cincinnati Gas & Elec. Co. Proj.,
Ser. A, VRDN*
(LC; Union Bank of Switzerland),
3.20%, 12/1/98.................................. 200,000
2,000 Kentucky HEL, Student Loan Corp.,
SLR, Ser. E, VRDN*
(Insd.; AMBAC),
3.20%, 12/2/98.................................. 2,000,000
------------
2,200,000
------------
Louisiana--1.6%
1,100 East Baton Rouge Parish PCR,
Exxon Proj., VRDN*
3.25%, 12/1/98.................................. 1,100,000
1,000 Jefferson Sales Tax Dist.,
Special STR, Ser. A,
(Insd.; FGIC),
6.25%, 12/1/98.................................. 1,000,000
600 Plaquemines Parish Environmental Rev.,
BP Exploration and Oil Proj., VRDN*
3.50%, 12/1/98.................................. 600,000
------------
2,700,000
------------
Maine--1.0%
1,735 Maine Educational Marketing
Corp. SLR, Ser. A-1,
5.65%, 5/1/99................................... 1,751,981
------------
7
<PAGE>
November 30, 1998
================================================================================
SCHEDULES OF INVESTMENTS (continued)
================================================================================
- --------------------------------------------------------------------------------
GENERAL MUNICIPAL PORTFOLIO (cont'd.)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Principal
Amount
(000) Value
- --------------------------------------------------------------------------------
Maryland--5.1%
Anne Arundel Cnty. EDR,
Baltimore Gas & Elec. Co.
Proj., VRDN*
$ 2,000 3.35%, 12/7/98................................. $ 2,000,000
3,000 Ser. A,
3.30%, 1/15/99.................................. 3,000,000
1,000 Howard Cnty. GO, Ser. B,
5.60%, 8/15/99.................................. 1,015,813
1,700 Montgomery Cnty.,
Miami Valley Hosp.,
Ser. 1998B,
3.40%, 1/11/99.................................. 1,700,000
1,000 Montgomery Cnty. GO,
Public Construction
Improvements, Ser. A,
5.00%, 5/1/99................................... 1,005,220
------------
8,721,033
------------
Massachussetts--1.2%
2,000 Gloucester BAN's,
4.00%, 8/5/99................................... 2,004,559
------------
Michigan--0.8%
1,375 Wayne-Westland Cmnty. Schs. GO,
5.00%, 5/1/99................................... 1,381,523
------------
Missouri--1.5%
2,500 Missouri EIERA, PCR,
Union Elec. Co. Proj., Ser. A,
(LC; Union Bank of Switzerland),
3.375%, 12/7/98................................. 2,500,000
------------
Nebraska--2.2%
Nebraska HEL Prog.,
Student Loan Prog., (LC; SLMA),
2,100 Ser. A, VRDN*
3.25%, 12/2/98.................................. 2,100,000
1,600 Ser. C, VRDN*
3.25%, 12/2/98.................................. 1,600,000
------------
3,700,000
------------
Nevada--2.2%
300 Clark Cnty. AIR,
Sub. Lien, Ser. A-2, VRDN*
(LC; Union Bank of Switzerland),
3.25%, 12/2/98.................................. 300,000
3,000 Las Vegas Valley Water, Ser. A,
(LC; Union Bank of Switzerland),
3.10%, 1/7/99................................... 3,000,000
- --------------------------------------------------------------------------------
Principal
Amount
(000) Value
- --------------------------------------------------------------------------------
$ 400 Reno Hosp. Rev.,
St. Mary's Regional Med. Ctr.
Proj., Ser. B, VRDN*
(Insd.; MBIA),
3.25%, 12/1/98.................................. $ 400,000
------------
3,700,000
------------
New Jersey--1.9%
1,600 New Jersey EDA,
Water Facilities Rev.,
United Water Proj.,
Ser. B, VRDN* (Insd.; AMBAC),
3.00%, 12/1/98.................................. 1,600,000
500 New Jersey EDA, EDR,
Foreign Trade Zone Proj., VRDN*
(LC; Morgan Guaranty Trust),
3.25%, 12/1/98.................................. 500,000
1,210 Parsippany-Troy Hills Township GO,
4.50%, 12/1/98.................................. 1,210,000
------------
3,310,000
------------
New York--7.5%
Long Island Power Auth.,
Elec. Sys. Rev.,
1,000 Ser. 3, (LC; Bayerische
Landesbank Girozentrale),
3.05%, 2/11/99.................................. 1,000,000
800 Sub. Ser. 6, VRDN*
(LC; ABN-Amro Bank NV
& Morgan Guaranty Trust),
3.20%, 12/1/98.................................. 800,000
2,000 MTA Transit Facilities BAN's,
Special Obligation,
Ser. CP1-Sub. Ser. B,
(LC; ABN-Amro Bank NV),
3.00%, 1/22/99.................................. 2,000,000
Nassau Cnty. GO,
General Improvements,
2,000 Ser. T, (Insd.; FGIC),
5.125%, 9/1/99.................................. 2,026,110
2,445 Ser. W, (Insd.; FGIC),
4.50%, 9/1/99................................... 2,465,546
2,000 Nassau Cnty. RAN's, Ser. A,
4.00%, 3/10/99.................................. 2,001,278
1,000 New York St. EFC, Ser. 1992A,
3.35%, 12/1/98.................................. 1,000,000
600 New York St. ERDA, PCR,
New York St. Elec. & Gas Proj.,
Ser. C, VRDN*
(LC; Morgan Guaranty Trust),
3.10%, 12/1/98.................................. 600,000
8
<PAGE>
================================================================================
================================================================================
- --------------------------------------------------------------------------------
Principal
Amount
(000) Value
- --------------------------------------------------------------------------------
$ 1,000 New York St. JDA,
Ser. B1-B21, VRDN*
3.15%, 12/1/98.................................. $ 1,000,000
------------
12,892,934
------------
Ohio--5.8%
1,000 Ohio St. Air Quality DA,
JMG Funding Ltd. Proj.,
Ser. B, VRDN*
(LC; Societe Generale Bank),
3.15%, 12/2/98.................................. 1,000,000
2,000 Ohio St. Higher Educ.
Facilities Rev., Higher Educ.
Cap. Facilities Boards,
Ser. 11-1990-A, (Insd.; MBIA),
6.70%, 5/1/99................................... 2,024,563
Ohio St. University,
General Receipts,
2,000 3.05%, 2/1/99.................................. 2,000,000
5,000 3.20%, 12/9/98................................. 5,000,000
------------
10,024,563
------------
Oregon--0.1%
200 Port of Portland
Special Obligation Rev.,
Horizon Air Industries Proj.,
VRDN* (LC; Bank of Montreal),
3.35%, 12/1/98.................................. 200,000
------------
Pennsylvania--7.2%
4,900 Carbon Cnty. IDA,
Resource Recovery Board,
Panther Creek Partners Proj.,
Ser. 1992A, (LC; National
Westminster Bank plc),
3.10%, 2/12/99.................................. 4,900,000
3,000 City of Philadelphia,
Gas Works Rev., Ser. C,
(LC; Canadian Imperial
Bank of Commerce),
2.95%, 2/19/99.................................. 3,000,000
2,000 Pennsylvania St. HEA, SLR,
Ser. A, VRDN*
(LC; SLMA),
3.20%, 12/2/98.................................. 2,000,000
1,000 Peters Township Sch. Dist. GO,
(Insd.; FGIC),
5.50%, 5/15/99.................................. 1,007,468
- --------------------------------------------------------------------------------
Principal
Amount
(000) Value
- --------------------------------------------------------------------------------
$ 1,500 Philadelphia TRAN's, Ser. A,
4.25%, 6/30/99.................................. $ 1,505,139
------------
12,412,607
------------
South Carolina--0.3%
500 Berkeley Cnty. Exempt
Industrial Facilities Rev.,
Amoco Chem. Co. Proj., VRDN*
3.45%, 12/1/98.................................. 500,000
------------
Tennessee--3.3%
2,300 Hamilton Cnty. IDR,
Seaboard Feeds Inc. Proj., VRDN*
(LC; Bank of New York),
3.35%, 12/3/98.................................. 2,300,000
900 Metropolitan Nashville Airport Auth.,
American Airlines Proj.,
Ser. B, VRDN*
(LC; Bayerische
Landesbank Girozentrale),
3.25%, 12/1/98.................................. 900,000
2,500 Shelby Cnty. TAN's, Ser. 1997B,
(LC; Landesbank Hessen),
3.20%, 1/14/99.................................. 2,500,000
------------
5,700,000
------------
Texas--12.4%
1,000 Brazos HEA,
Ser. B-1, VRDN*
(CS; SLMA),
3.15%, 12/2/98.................................. 1,000,000
3,000 Brazos River Auth.,
Ser. 1993A,
3.15%, 2/5/99................................... 3,000,000
2,700 City of Houston GO,
3.25%, 1/12/99.................................. 2,700,000
1,000 Dallas Area Rapid Transit,
STR, Ser. A,
(LC; Westdeutsche Landesbank),
3.05%, 1/21/99.................................. 1,000,000
1,200 Dallas Water Works & Sewer, Ser. B,
(LC; Union Bank of Switzerland),
3.25%, 12/8/98.................................. 1,200,000
1,010 Fort Worth Independent Sch. Dist. GO,
7.25%, 2/15/99.................................. 1,017,967
Grapevine IDR,
Multiple Mode American Airlines,
VRDN* (LC; Morgan Guaranty Trust),
400 Ser. A2,
3.25%, 12/1/98.................................. 400,000
9
<PAGE>
November 30, 1998
================================================================================
SCHEDULES OF INVESTMENTS (continued)
================================================================================
- --------------------------------------------------------------------------------
GENERAL MUNICIPAL PORTFOLIO (cont'd.)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Principal
Amount
(000) Value
- --------------------------------------------------------------------------------
Texas (cont'd.)
$ 400 Ser. B2,
3.25%, 12/1/98................................... $ 400,000
200 Ser. B4,
3.25%, 12/1/98................................... 200,000
800 Gulf Coast WDA, Environ. Facs. Rev.,
Amoco Oil Co. Proj., VRDN*
3.45%, 12/1/98................................... 800,000
500 Gulf Coast WDA, PCR,
Amoco Oil Co. Proj., VRDN*
3.30%, 12/1/98................................... 500,000
Harris Cnty. HFDCR,
600 Methodist Hosp., VRDN*
3.30%, 12/1/98................................... 600,000
St. Lukes Episcopal Hosp.,
1,300 Ser. A, VRDN*
3.25%, 12/1/98................................... 1,300,000
700 Ser. B, VRDN*
3.25%, 12/1/98................................... 700,000
2,600 Harris Cnty. ID Corp.,
Marine Terminal Rev.,
Lubrizol Corp. Proj., VRDN*
3.10%, 12/2/98................................... 2,600,000
500 Lone Star Airport Improvements
Auth., Multiple Mode,
Ser. A-3, VRDN*
(LC; Royal Bank of Canada),
3.25%, 12/1/98................................... 500,000
1,400 Lower Colorado River Auth. Tex. Rev.,
Jr. Lien, Ser. 3rd Suppl., VRDN*
(Insd.; MBIA),
3.05%, 12/2/98................................... 1,400,000
500 Port Authority Navigation Dist.,
Texaco Inc. Proj., VRDN*
3.35%, 12/1/98................................... 500,000
1,050 Round Rock GO,
Independent Sch. Dist., Ser. B,
(Insd.; PSFG),
7.00%, 8/1/99.................................... 1,075,262
500 Texas HEA, Ser. B, VRDN*
(Insd.; FGIC),
3.15%, 12/2/98................................... 500,000
------------
21,393,229
------------
- --------------------------------------------------------------------------------
Principal
Amount
(000) Value
- --------------------------------------------------------------------------------
Utah--6.2%
Intermountain Pwr. Agy.,
(Insd.; AMBAC),
$ 3,000 Ser. '85E,
3.00%, 1/25/99.................................. $ 3,000,000
2,000 Ser. '85F,
3.35%, 1/11/99.................................. 2,000,000
2,600 Salt Lake Cnty. PCR,
Service Station Holdings Proj.,
Ser. B, VRDN*
3.30%, 12/1/98.................................. 2,600,000
2,000 Utah St. Brd. Regents SLR,
Ser. L, VRDN*
(Insd.; AMBAC),
3.25%, 12/2/98.................................. 2,000,000
1,000 Utah St. GO, Ser. 1998A,
3.50%, 12/7/98.................................. 1,000,000
------------
10,600,000
------------
Vermont--0.6%
1,000 Vermont St. GO, Ser. B,
5.00%, 1/15/99.................................. 1,002,046
------------
Virginia--0.6%
1,000 Virginia St. PSA,
Special Obligation, Henrico Cnty.,
Sch. Financing Board,
6.60%, 1/15/99 (A).............................. 1,006,440
------------
Washington--1.2%
Seattle City,
Municipal Power & Light Rev.,
1,000 3.00%, 2/4/99................................... 1,000,000
1,000 3.00%, 3/11/99.................................. 1,000,000
------------
2,000,000
------------
Wisconsin--1.0%
1,803 Wisconsin St. GO,
3.00%, 1/19/99.................................. 1,803,000
------------
Total Investments
(amortized cost--$162,897,340+)................... 94.8% $162,897,340
Other Assets in Excess
of Liabilities.................................... 5.2 8,918,686
------- ------------
Total Net Assets.................................... 100.0% $171,816,026
======= ============
10
<PAGE>
================================================================================
================================================================================
- --------------------------------------------------------------------------------
CALIFORNIA MUNICIPAL PORTFOLIO
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Principal
Amount
(000) Value
- --------------------------------------------------------------------------------
California--96.5%
$ 500 Alameda Contra Costa School FA,
Capital Improvements,
Ser. B, VRDN*
(LC; Canadian Imperial
Bank of Commerce),
2.50%, 12/3/98................................. $ 500,000
290 Alameda Cnty. IDA, Indl. Rev.,
Intermountain Trading, VRDN*
(LC; California St. Tchrs. Ret. Fd.),
2.75%, 12/2/98................................. 290,000
1,800 Anaheim Ctfs. Partn.,
1993 Ref. Projs., VRDN*
(Insd.; AMBAC),
2.60%, 12/2/98................................. 1,800,000
1,000 California Educational Facilities
Auth. Rev., Stanford University,
Ser. L-3, VRDN*
2.45%, 12/2/98................................. 1,000,000
California HFFAR,
1,075 Catholic Healthcare West,
Ser. A, (Insd.; MBIA),
4.50%, 7/1/99.................................. 1,081,082
Hosp. Adventist Hlth. Sys.,
(Insd.; MBIA),
100 Ser. A, VRDN*
3.25%, 12/1/98................................. 100,000
500 Ser. B, VRDN*
3.25%, 12/1/98................................. 500,000
2,000 Memorial Hlth. Svcs. Proj., VRDN*
2.80%, 12/2/98................................. 2,000,000
2,000 St. Joseph Hlth. Sys.,
Ser. B, VRDN*
3.00%, 12/1/98................................. 2,000,000
1,050 Sutter Hlth., Ser. B,
VRDN* (Insd.; AMBAC),
3.00%, 12/1/98................................. 1,050,000
California PCFA, PCR,
2,000 Homestake Mining Proj.,
Ser. '84A, VRDN*
(LC; Bank of Nova Scotia),
2.65%, 12/2/98................................. 2,000,000
800 Pacific Gas & Elec.,
Ser. B, VRDN*
(LC; Deutsche Bank AG),
3.35%, 12/1/98................................. 800,000
- --------------------------------------------------------------------------------
Principal
Amount
(000) Value
- --------------------------------------------------------------------------------
$ 2,000 California PCFA, PCR, RRR,
Wadham Energy Proj., Ser. C,
VRDN* (LC; Banque de Paribas),
3.70%, 12/2/98................................. $ 2,000,000
California PCFA, SWDR,
Shell Oil Co. Martinez Proj., VRDN*
500 Ser. A,
3.30%, 12/1/98................................. 500,000
2,300 Ser. B,
3.30%, 12/1/98................................. 2,300,000
1,000 California SCD Auth. Multifamily Rev.,
Greenback Manor Apts.,
Ser. A, VRDN*
(LC; East West Bank and FHLB),
2.70%, 12/3/98................................. 1,000,000
California SCD Auth. Rev. Ctfs. Partn.,
550 John Muir/Mt. Diablo Hlth.,
VRDN* (Insd.; AMBAC),
3.00%, 12/1/98................................. 550,000
1,000 St. Joseph Health Sys.
Group Proj., VRDN*
3.00%, 12/1/98................................. 1,000,000
California SCD Corp. Rev., ID,
(LC; California St. Tchrs. Ret. Fd.),
695 Florestone Prod. Proj., VRDN*
2.80%, 12/2/98................................. 695,000
1,800 South Bay Circuits Proj., VRDN*
2.80%, 12/2/98................................. 1,800,000
500 Staub Prod. Proj., Ser. A, VRDN*
2.80%, 12/2/98................................. 500,000
California St. DWR,
Water Rev., Ser. 1,
1,562 2.70%, 12/4/98................................. 1,562,000
1,000 2.90%, 12/8/98................................. 1,000,000
California St. EDAR,
Independent Sys. Proj.,
(LC; Bank of America),
1,000 Ser. A, VRDN*
3.25%, 12/1/98................................. 1,000,000
1,950 Ser. D, VRDN*
3.25%, 12/1/98................................. 1,950,000
1,000 California St. GO,
2.90%, 1/14/99................................. 1,000,000
1,300 California St. RAN's,
4.00%, 6/30/99................................. 1,308,771
City of Los Angeles TRAN's,
2,000 4.00%, 6/30/99................................. 2,004,800
500 4.25%, 6/30/99................................. 501,979
11
<PAGE>
November 30, 1998
================================================================================
SCHEDULES OF INVESTMENTS(Continued)
================================================================================
- --------------------------------------------------------------------------------
CALIFORNIA MUNICIPAL PORTFOLIO (cont'd.)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Principal
Amount
(000) Value
- --------------------------------------------------------------------------------
California (cont'd.)
$ 1,400 Fresno USD GO,
Ser. D, (Insd.; FSA),
4.50%, 2/1/99.................................. $ 1,401,823
2,080 Irvine Pub. Facs. & Infrastructure,
Auth. Lease Rev.,
Capital Improvements Proj.,
VRDN* (LC; Bayerische
Vereinsbank AG),
2.50%, 12/3/98................................. 2,080,000
Irvine Ranch WD,
600 Ser. A, VRDN*
(LC; Bank of America),
3.10%, 12/1/98................................. 600,000
700 Construction Improvements Dist.,
VRDN* (LC; Toronto-
Dominion Bank),
3.10%, 12/1/98................................. 700,000
3,000 Los Angeles Cnty. MTA,
Second Subordinate STR,
(LC; Canadian Imperial
Bank of Commerce),
3.00%, 1/15/99................................. 3,000,000
2,500 Los Angeles Cnty. TRAN's, Ser. A,
4.50%, 6/30/99................................. 2,511,550
2,000 Los Angeles Dept. of Power
& Water, (LC; Toronto-
Dominion Bank),
2.90%, 1/22/99................................. 2,000,000
2,500 Marin Cnty. TRAN's,
4.50%, 6/30/99................................. 2,513,245
1,800 Orange Cnty. Improvement Board,
Assessment Dist., VRDN*
(LC; Societe Generale and
Kredietbank NV),
3.25%, 12/1/98................................. 1,800,000
1,000 Orange Cnty. Sanitation Dist.,
Ser. C, VRDN*
(Insd.; FGIC),
3.20%, 12/1/98................................. 1,000,000
1,100 Orange Cnty. WD Ctfs. Partn.,
Ser. B, VRDN*
(LC; National Westminster Bank plc),
3.00%, 12/1/98................................. 1,100,000
- --------------------------------------------------------------------------------
Principal
Amount
(000) Value
- --------------------------------------------------------------------------------
$ 3,000 Sacramento MUD, Ser. I,
(LC; Bayerische
Landesbank Girozentrale),
2.90%, 1/15/99................................. $ 3,000,000
1,500 San Bernardino Cnty. TRAN's,
4.50%, 9/30/99................................. 1,518,854
San Diego Cnty,
Tietor Obligation, Ser. B1,
(LC; Landesbank
Hessen Thuringen),
2,000 2.90%, 1/11/99................................. 2,000,000
2,500 3.00%, 12/9/98................................. 2,500,000
1,000 Santa Barbara Cnty. TRAN's,
4.50%, 6/30/99................................. 1,004,626
872 Santa Clara Cnty. El Camino
Dist. Hosp. FAR,
Lease--VY Med. Ctr. Proj.,
Ser. A, VRDN*
(LC; Bayerische Vereinsbank AG),
2.50%, 12/1/98................................. 872,000
1,200 Santa Clara Cnty. FAR,
VMC Fac. Replacement Proj.,
Ser. B, VRDN*
2.75%, 12/2/98................................. 1,200,000
300 Stockton MFHR,
Mariners Pointe Assoc., Ser. A,
VRDN* (LC; Bank of America),
2.95%, 12/2/98................................. 300,000
3,000 University of California,
Board of Regents, Ser. A,
3.00%, 12/7/98................................. 3,000,000
------------
67,895,730
------------
Puerto Rico--2.1%
1,500 Puerto Rico Gov't. Dev. Bank,
2.85%, 12/14/98................................ 1,500,000
------------
Total Investments
(amortized cost--$69,395,730+).................... 98.6% $ 69,395,730
Other Assets in Excess
of Liabilities.................................... 1.4 996,841
-------- ------------
Total Net Assets.................................... 100.0% $ 70,392,571
======== ============
12
<PAGE>
================================================================================
================================================================================
- --------------------------------------------------------------------------------
NEW YORK MUNICIPAL PORTFOLIO
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Principal
Amount
(000) Value
- --------------------------------------------------------------------------------
New York--94.7%
$ 1,400 Babylon IDA, RRR,
OFS Equity Babylon Proj.,
VRDN* (LC; Union Bank
of Switzerland),
3.15%, 12/1/98................................. $ 1,400,000
3,100 Battery Park City Auth. Rev.,
6.50%, 5/1/99 (A).............................. 3,136,590
1,002 Dutchess Cnty. GO,
4.00%, 6/15/99................................. 1,003,811
Long Island Power Auth.,
Elec. Sys. Rev.
1,000 Ser. 3, (LC; Westdeutsche
Landesbank),
3.10%, 1/7/99.................................. 1,000,000
690 Sub. Ser. 6, VRDN*
(LC; ABN-Amro Bank NV
& Morgan Guaranty Trust),
3.20%, 12/1/98................................. 690,000
500 Massapequa USD TRAN's,
3.80%, 6/30/99................................. 500,557
1,000 Monroe Cnty. BAN's,
4.00%, 7/23/99................................. 1,002,475
1,600 Monroe Cnty. GO,
Public Improvements,
4.75%, 3/1/99.................................. 1,606,805
MTA Transit Facilities BAN's,
Special Obligation,
Ser. CP1-Sub. Ser. B,
(LC; ABN-Amro Bank NV),
1,000 3.00%, 1/14/99................................. 1,000,000
3,000 3.05%, 2/5/99.................................. 3,000,000
3,000 Nassau Cnty. GO,
General Improvements,
Ser. T, (Insd.; FGIC),
5.125%, 9/1/99................................. 3,039,164
Nassau Cnty. IDA, VRDN*
(LC; Morgan Guaranty Trust),
500 Civic Facilities Rev.,
Winthrop University Hosp. Proj.,
3.30%, 12/1/98................................. 500,000
1,200 Research Facilities Rev.,
Cold Spring Harbor Lab. Proj.,
3.30%, 12/1/98................................. 1,200,000
New York City GO,
250 Ser. B, VRDN*
(Insd.; FGIC),
3.50%, 12/1/98................................. 250,000
- --------------------------------------------------------------------------------
Principal
Amount
(000) Value
- --------------------------------------------------------------------------------
$ 100 Ser. B-Sub. Ser. B5, VRDN*
(Insd.; MBIA),
3.35%, 12/1/98................................. $ 100,000
900 Ser. B-Sub. Ser. B6, VRDN*
(Insd.; MBIA),
3.35%, 12/1/98................................. 900,000
1,000 Ser. B-Sub. Ser. B9,
(Insd.; Chase Manhattan Bank),
3.05%, 1/4/99.................................. 1,000,000
800 Sub. Ser. B2, VRDN*
(LC; Morgan Guaranty Trust),
3.50%, 12/1/98................................. 800,000
600 Sub. Ser. B3, VRDN*
(LC; Morgan Guaranty Trust),
3.50%, 12/1/98................................. 600,000
3,000 New York City Mun. Asst. Corp.,
Sub. Ser. K-3, VRDN*
(LC; Landesbank Hessen),
2.70%, 12/2/98................................. 3,000,000
1,440 New York City MWFA,
Water & Sewer Sys. Rev.,
Ser. A, VRDN* (Insd.; FGIC),
3.75%, 12/1/98................................. 1,440,000
1,200 New York City Transitional FAR,
Future Tax, Ser. C, VRDN*
3.30%, 12/1/98................................. 1,200,000
New York City Trust CRR,
2,000 Carnegie Hall Proj., VRDN*
(LC; Westdeutsche Landesbank),
3.20%, 12/2/98................................. 2,000,000
1,700 Museum of Broadcasting Proj.,
VRDN* (LC; Kredietbank NV),
2.80%, 12/2/98................................. 1,700,000
1,400 New York City Water Finance,
Ser. 5B,
3.25%, 12/7/98................................. 1,400,000
1,000 New York City Water & Sewer,
Ser. 4, (LC; Westdeutsche
Landesbank),
3.10%, 1/7/99.................................. 1,000,000
New York St. DAR,
500 Cornell University,
Ser. B, VRDN*
3.30%, 12/1/98................................. 500,000
Memorial Sloan-Kettering Cancer
Center, (LC; Chase Manhattan Bank),
Ser. 1989 A,
2,300 2.90%, 1/21/99................................. 2,300,000
1,000 3.40%, 12/7/98................................. 1,000,000
13
<PAGE>
November 30, 1998
================================================================================
SCHEDULES OF INVESTMENTS(continued)
================================================================================
- --------------------------------------------------------------------------------
NEW YORK MUNICIPAL PORTFOLIO (cont'd.)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Principal
Amount
(000) Value
- --------------------------------------------------------------------------------
New York (cont'd.)
$ 1,325 Metropolitan Museum of Art Proj.,
Ser. B, VRDN*
2.80%, 12/2/98................................. $ 1,325,000
505 Miriam Osborn Memorial Home Proj.,
Ser. A, VRDN*
(LC; Banque de Paribas),
2.90%, 12/2/98................................. 505,000
New York St. EFC,
2,000 Ser. 1992A, 3.35%, 12/3/98..................... 2,000,000
1,000 Ser. 1992A, 3.40%, 12/1/98..................... 1,000,000
1,500 Ser. 1997A, 3.15%, 1/8/99...................... 1,500,000
3,000 New York St. ERDA, Gas Facilities Rev.,
Brooklyn Union Gas Proj.,
Ser. A2, VRDN*
(Insd.; MBIA),
3.05%, 12/2/98................................. 3,000,000
New York St. ERDA, PCR,
1,100 New York St. Elec. & Gas Proj.,
Ser. D, VRDN*
(LC; First National
Bank of Chicago),
3.10%, 12/1/98................................. 1,100,000
Niagara Mohawk Power Corp.
Proj., VRDN*
300 (LC; Morgan Guaranty Trust),
3.80%, 12/1/98................................. 300,000
1,100 Ser. A,
(LC; Toronto-Dominion Bank),
3.30%, 12/1/98................................. 1,100,000
600 Ser. B,
(LC; Morgan Guaranty Trust),
3.80%, 12/1/98................................. 600,000
500 Ser. C,
(LC; Canadian Imperial
Bank of Commerce),
3.35%, 12/1/98................................. 500,000
1,300 Rochester Gas & Elec. Co. Proj.,
Ser. A, VRDN*
(Insd.; MBIA),
2.80%, 12/2/98................................. 1,300,000
- --------------------------------------------------------------------------------
Principal
Amount
(000) Value
- --------------------------------------------------------------------------------
New York St. GO, Ser. U,
$ 900 2.90%, 12/3/98................................. $ 900,000
1,500 3.05%, 2/5/99.................................. 1,500,000
2,800 New York St. HFA,
Service Contract Obligation Rev.,
Ser. A, VRDN*
(LC; Commerzbank AG),
2.85%, 12/2/98................................. 2,800,000
New York St. JDA, VRDN*
1,240 Ser. A1-A13,
3.15%, 12/1/98................................. 1,240,000
995 Ser. B1-B21,
3.15%, 12/1/98................................. 995,000
New York St. LGAC,
1,600 Ser. D, VRDN*
(LC; Societe Generale),
2.70%, 12/2/98................................. 1,600,000
1,500 Ser. E, VRDN*
(LC; Canadian Imperial
Bank of Commerce),
2.65%, 12/2/98................................. 1,500,000
New York St. PAR,
1,000 (LC; Commerzbank),
3.00%, 2/9/99.................................. 1,000,000
3,000 Ser. 4,
3.15%, 1/19/99................................. 3,000,000
New York St. Thruway Auth.,
1,560 Emergency Highway,
Construction & Reconstruction,
Ser. A, (Insd.; FSA),
5.75%, 3/1/99.................................. 1,570,476
1,100 General Rev.,
VRDN* (LC; FGIC),
3.35%, 12/1/98................................. 1,100,000
456 Niagara Cnty. IDA, IDR,
Pyron Corp. Proj., VRDN*
(LC; Chase Manhattan Bank),
3.20%, 12/2/98................................. 456,000
Port Auth. of New York & New Jersey,
875 3.00%, 2/12/99................................. 875,000
Versatile Structure Obl.,
1,700 Ser. 2, VRDN*
3.25%, 12/1/98................................. 1,700,000
700 Ser. 5, VRDN*
3.35%, 12/1/98................................. 700,000
1,287 Rockland Cnty. GO,
4.00%, 5/1/99.................................. 1,292,284
14
<PAGE>
================================================================================
================================================================================
- --------------------------------------------------------------------------------
Principal
Amount
(000) Value
- --------------------------------------------------------------------------------
$ 2,000 Sachem Central School Dist.
Holbrook TAN's,
4.00%, 6/25/99.................................. $ 2,004,338
1,000 Saint Lawrence Cnty. IDA, EIR,
Reynolds Metals Co. Proj., VRDN*
(LC; Royal Bank of Canada),
3.20%, 12/2/98.................................. 1,000,000
495 Schenectady GO,
Public Improvements,
(Insd.; AMBAC),
4.90%, 5/15/99.................................. 497,391
1,000 Suffolk Cnty. IDA, IDR,
Nissequogue Cogen Ptnrs. Proj.,
VRDN* (LC; Toronto-
Dominion Bank),
2.95%, 12/2/98.................................. 1,000,000
- --------------------------------------------------------------------------------
Principal
Amount
(000) Value
- --------------------------------------------------------------------------------
$ 450 Wallkill IDA, PCR,
Reynolds Metals Co. Proj.,
VRDN* (LC; Dresdner
Bank AG),
3.40%, 12/2/98.................................. $ 450,000
------------
79,679,891
------------
Puerto Rico--1.2%
1,000 Puerto Rico Gov't. Dev. Bank,
2.90%, 12/17/98................................. 1,000,000
------------
Total Investments
(amortized cost--$80,679,891+).................... 95.9% $ 80,679,891
Other Assets in Excess
of Liabilities.................................... 4.1 3,468,414
------------
Total Net Assets.................................... 100.0% $ 84,148,305
============
- --------------------------------------------------------------------------------
+ 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). Maturity date shown is date of next rate change.
** Floating rate securities are instruments whose interest rates vary with
changes in a designated base rate (such as the prime interest rate).
Maturity date shown reflects the later of the next interest rate date or
the next put date.
(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.
15
<PAGE>
November 30, 1998
================================================================================
SCHEDULES OF INVESTMENTS (concluded)
================================================================================
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
EDFAR Economic Development Financing
Authority Revenue
EDR Economic Development Revenue
EEIR Education Equipment & Improvement Revenue
EFAR Educational Facilities Authority 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 Agency
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
PSFG Permanent School Fund Guaranty
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
16
<PAGE>
This page was intentionally left blank.
17
<PAGE>
<TABLE>
<CAPTION>
November 30, 1998
===================================================================================================================================
STATEMENTS OF ASSETS AND LIABLILITES
===================================================================================================================================
-------------- ------------- ------------- ------------- -------------
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 --
$2,515,901,430, $111,353,077,
$162,897,340, $69,395,730 and
$80,679,891, respectively) $2,515,901,430 $ 111,353,077 $ 162,897,340 $ 69,395,730 $ 80,679,891
Cash ................................ 150,239 88,863 63,560 87,518 64,712
Receivable from investments called .. -- -- 6,100,000 -- --
Receivable from investments sold .... -- -- -- -- 1,500,000
Receivable from capital stock sold .. 54,477,950 862,853 1,775,899 576,116 1,668,420
Interest receivable ................. 6,284,036 55,911 1,152,865 409,718 340,163
Prepaid expenses and other assets ... 119,769 13,730 15,945 4,436 4,430
-------------- ------------- ------------- ------------- -------------
Total Assets ........................ 2,576,933,424 112,374,434 172,005,609 70,473,518 84,257,616
-------------- ------------- ------------- ------------- -------------
Liabilities
Payable for capital stock redeemed .. 171,814 30,618 400 -- 10,379
Investment advisory fee payable ..... 114,457 6,105 9,006 3,858 4,568
Distribution fee payable ............ 70,166 3,087 4,699 1,929 2,284
Dividends payable ................... 3,427,026 146,324 123,344 44,640 54,957
Other payables and accrued
expenses ......................... 711,307 42,391 52,134 30,520 37,123
-------------- ------------- ------------- ------------- -------------
Total Liabilities ................... 4,494,770 228,525 189,583 80,947 109,311
-------------- ------------- ------------- ------------- -------------
Total Net Assets .................... $2,572,438,654 $ 112,145,909 $ 171,816,026 $ 70,392,571 $ 84,148,305
============== ============= ============= ============= =============
Composition of Net Assets
Par value ($.0001 per share,
10 billion shares
authorized for each portfolio).. $ 257,248 $ 11,217 $ 17,191 $ 7,042 $ 8,417
Paid-in-capital in excess of par .... 2,572,182,062 112,134,432 171,850,296 70,416,976 84,164,483
Accumulated net realized gain
(loss) on investments ............ (656) 260 (51,461) (31,447) (24,595)
-------------- ------------- ------------- ------------- -------------
Total Net Assets .................... $2,572,438,654 $ 112,145,909 $ 171,816,026 $ 70,392,571 $ 84,148,305
============== ============= ============= ============= =============
Shares outstanding .................. 2,572,478,480 112,167,842 171,909,991 70,424,019 84,172,900
-------------- ------------- ------------- ------------- -------------
Net asset value per share ........... $1.00 $1.00 $1.00 $1.00 $1.00
============== ============= ============= ============= =============
</TABLE>
See accompanying notes to financial statements.
18
<PAGE>
<TABLE>
<CAPTION>
Year ended November 30, 1998
===================================================================================================================================
STATEMENTS OF OPERATIONS
===================================================================================================================================
-------------- ------------- ------------- ------------- -------------
General California New York
Primary Government Municipal Municipal Municipal
Portfolio Portfolio Portfolio Portfolio Portfolio
-------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Investment Income
Interest......................... $ 126,036,448 $ 5,204,436 $ 5,719,947 $ 2,125,059 $ 2,616,666
-------------- ------------- ------------- ------------- -------------
Operating Expenses
Investment advisory fee.......... 9,186,601 471,925 777,022 321,580 381,464
Distribution fee................. 5,616,626 236,677 403,901 160,790 190,732
Transfer and dividend
disbursing agent fees......... 1,521,988 44,715 59,897 20,948 50,822
Administrative services fee...... 1,109,614 44,808 79,380 31,986 33,704
Shareholder services fee......... 451,367 20,236 33,375 12,847 17,732
Registration fees................ 175,567 17,522 30,531 2,567 2,075
Custodian fees................... 157,853 35,041 43,038 14,943 18,017
Reports and notices to
shareholders.................. 146,025 3,140 4,711 1,570 1,570
Audit fees....................... 47,862 14,372 14,636 14,290 14,297
Directors' fees and expenses..... 33,961 27,230 27,248 27,219 27,224
Legal fees....................... 31,784 1,304 2,220 874 1,013
Miscellaneous.................... 134,684 7,809 10,333 4,274 5,994
-------------- ------------- ------------- ------------- -------------
Total operating expenses...... 18,613,932 924,779 1,486,292 613,888 744,644
Less: Investment advisory
fee waived.................. -- (1,581) -- -- --
Less: Expenses offset......... (48,672) (3,774) (6,955) (4,260) (4,302)
-------------- ------------- ------------- ------------- -------------
Net operating expenses........ 18,565,260 919,424 1,479,337 609,628 740,342
-------------- ------------- ------------- ------------- -------------
Net investment income....... 107,471,188 4,285,012 4,240,610 1,515,431 1,876,324
Net realized gain (loss)
on investments................ 449 523 (709) -- --
-------------- ------------- ------------- ------------- -------------
Net increase in net assets
resulting from operations........ $ 107,471,637 $ 4,285,535 $ 4,239,901 $ 1,515,431 $ 1,876,324
============== ============= ============= ============= =============
</TABLE>
See accompanying notes to financial statements.
19
<PAGE>
<TABLE>
<CAPTION>
===================================================================================================================
STATEMENTS OF CHANGES IN NET ASSETS
===================================================================================================================
------------------------------------ ------------------------------------
Primary Portfolio Government Portfolio
------------------------------------ ------------------------------------
Year ended November 30, Year ended November 30,
------------------------------------ ------------------------------------
1998 1997 1998 1997
---------------- ---------------- ---------------- ----------------
<S> <C> <C> <C> <C>
Operations
Net investment income ............ $ 107,471,188 $ 91,488,606 $ 4,285,012 $ 4,459,722
Net realized gain (loss)
on investments ................. 449 (1,017) 523 (125)
---------------- ---------------- ---------------- ----------------
Net increase in net assets
resulting from operations ..... 107,471,637 91,487,589 4,285,535 4,459,597
---------------- ---------------- ---------------- ----------------
Dividends and Distributions
to Shareholders
Net investment income ............ (107,471,188) (91,488,606) (4,285,012) (4,459,722)
Net realized gains ............... -- -- -- --
---------------- ---------------- ---------------- ----------------
Total dividends and
distributions to shareholders . (107,471,188) (91,488,606) (4,285,012) (4,459,722)
---------------- ---------------- ---------------- ----------------
Capital Stock Transactions
Net proceeds from sales .......... 14,416,847,565 13,181,820,880 642,903,095 654,106,085
Reinvestment of dividends
and distributions .............. 106,839,942 90,685,550 4,257,414 4,444,709
Cost of shares redeemed .......... (14,117,821,757) (12,818,513,719) (634,993,342) (659,707,954)
---------------- ---------------- ---------------- ----------------
Net increase (decrease) in
net assets from capital stock
transactions .................. 405,865,750 453,992,711 12,167,167 (1,157,160)
---------------- ---------------- ---------------- ----------------
Total increase (decrease) in
net assets ..................... 405,866,199 453,991,694 12,167,690 (1,157,285)
Net Assets
Beginning of year ................ 2,166,572,455 1,712,580,761 99,978,219 101,135,504
---------------- ---------------- ---------------- ----------------
End of year ...................... $ 2,572,438,654 $ 2,166,572,455 $ 112,145,909 $ 99,978,219
================ ================ ================ ================
</TABLE>
See accompanying notes to financial statements.
20
<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,
- ---------------------------------- ---------------------------------- ----------------------------------
1998 1997 1998 1997 1998 1997
- --------------- --------------- --------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C> <C>
$ 4,240,610 $ 3,642,482 $ 1,515,431 $ 1,517,212 $ 1,876,324 $ 1,701,134
(709) (1,853) -- (593) -- (794)
- --------------- --------------- --------------- --------------- --------------- ---------------
4,239,901 3,640,629 1,515,431 1,516,619 1,876,324 1,700,340
- --------------- --------------- --------------- --------------- --------------- ---------------
(4,240,610) (3,642,482) (1,515,431) (1,517,212) (1,876,324) (1,701,134)
-- -- -- -- -- --
- --------------- --------------- --------------- --------------- --------------- ---------------
(4,240,610) (3,642,482) (1,515,431) (1,517,212) (1,876,324) (1,701,134)
- --------------- --------------- --------------- --------------- --------------- ---------------
1,032,098,542 910,670,497 429,969,028 389,323,623 500,835,718 452,234,876
4,223,116 3,612,892 1,513,776 1,513,811 1,879,639 1,646,954
(1,001,476,568) (899,591,683) (416,803,566) (388,484,165) (491,805,768) (440,638,442)
- --------------- --------------- --------------- --------------- --------------- ---------------
34,845,090 14,691,706 14,679,238 2,353,269 10,909,589 13,243,388
- --------------- --------------- --------------- --------------- --------------- ---------------
34,844,381 14,689,853 14,679,238 2,352,676 10,909,589 13,242,594
136,971,645 122,281,792 55,713,333 53,360,657 73,238,716 59,996,122
- --------------- --------------- --------------- --------------- --------------- ---------------
$ 171,816,026 $ 136,971,645 $ 70,392,571 $ 55,713,333 $ 84,148,305 $ 73,238,716
=============== =============== =============== =============== =============== ===============
</TABLE>
21
<PAGE>
November 30, 1998
================================================================================
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 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 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 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 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.
(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 expense offset arrangements with its custodian bank
and transfer agent 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.
(h) Directors' Fees and Expenses
On October 19, 1998, the Fund adopted a retirement plan that provides for
payments upon retirement to independent directors based on the average annual
compensation paid to them during their five highest paid years of service. An
independent director must serve for a minimum of seven years (or such lesser
period as may be approved by the board) to become eligible to receive benefits.
The effective date of the retirement plan is December 1, 1998, therefore, no
expenses have been accrued for the year ended November 30, 1998.
22
<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 is contractually obligated to waive its fees and/or
reimburse operating expenses to the extent that total operating expenses of a
Portfolio exceed 1.00% of its average daily net assets (net of expenses offset)
for any fiscal year. For the year ended November 30, 1998, the Adviser waived
$1,581 in investment advisory fees for Government.
(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 year ended November 30, 1998, purchases and sales/maturities of
investment securities were: Primary $17,067,449,527 and $16,813,395,669,
respectively; Government $1,885,667,319 and $1,878,886,974, respectively;
General $819,750,745 and $791,622,166, respectively; California $323,225,562 and
$308,194,000, respectively; and New York $408,422,740 and $400,246,025,
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 November 30, 1998, major industry
concentrations were as follows: Banking--32.8%, Finance--13.9%, Automotive--
11.6%, Sovereign--9.1% and U.S. Government Agencies--7.5%. 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 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 were required to be diversified with
respect to 75% of their total assets. Accordingly, California and New York
maintain diversified portfolios 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.
5. Capital Loss Carryforward
At November 30, 1998, accumulated net realized capital loss carryforwards
available as a reduction against future net realized capital gains for Federal
income tax purposes were: Primary--$656 which will expire in 2005.
General--$51,461 of which $1,302 will expire in 1999, $13,801 will expire in
2000, $299 will expire in 2001, $33,497 will expire in 2003, $1,853 will expire
in 2005 and $709 will expire in 2006. General had $29,512 in capital loss
carryforwards expire on November 30, 1998. Such amount has been reclassed to
additional paid-in capital to reflect General's federal tax cost basis of
available accumulated realized capital loss carryforwards. California--$31,447
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, $9,304 will expire in 2004 and $593
will expire in 2005 and New York--$24,595 of which $3,198 will expire in 2000,
$934 will expire in 2001, $19,669 will expire in 2003 and $794 will expire in
2005. Primary and Government utilized $449 and $263, respectively, of capital
loss carryforwards for the year ended November 30, 1998. To the extent that
these capital loss carryforwards are used to offset future net realized capital
gains, the gains offset will not be distributed to shareholders.
23
<PAGE>
<TABLE>
<CAPTION>
================================================================================================================================
FINANCIAL HIGHLIGHTS (For a share outstanding throughout each year)
================================================================================================================================
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 Year Income on Investments Operations Income Realized Gains Shareholders
<S> <C> <C> <C> <C> <C> <C> <C>
Primary Portfolio
Year ended Nov. 30, 1998 $1.000 $0.048 $0.000 $0.048 ($0.048) -- ($0.048)
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)
Government Portfolio
Year ended Nov. 30, 1998 $1.000 $0.045 $0.000 $0.045 ($0.045) -- ($0.045)
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)
<CAPTION>
RATIOS TO
AVERAGE
NET ASSETS
Net Asset Net Assets, ----------------------
Value, End of Net Net
End of Total Year Operating Investment
Year Return* (millions) Expenses(3) Income
<S> <S> <C> <C> <C> <C>
Primary Portfolio
Year ended Nov. 30, 1998 $1.000 4.90% $2,572.4 0.83%(2) 4.78%(2)
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%
Government Portfolio
Year ended Nov. 30, 1998 $1.000 4.63% $112.1 0.98%(1,2) 4.53%(1,2)
Year ended Nov. 30, 1997 1.000 4.60% 100.0 0.98%(1) 4.51%(1)
Year ended Nov. 30, 1996 1.000 4.51% 101.1 1.00%(1) 4.41%(1)
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)
</TABLE>
(1) During the years 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 0.97% and 4.52%, respectively, for the year
ended November 30, 1998, 0.99% and 4.50%, 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 year ended November 30, 1998 were $2,246,650,283
and $94,670,967 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 (See Note 1g in
Notes to Financial Statements).
* Assumes reinvestment of all dividends and distributions.
24
<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 Year Income on Investments Operations Income by Adviser
<S> <C> <C> <C> <C> <C> <C>
General Municipal Portfolio
Year ended Nov. 30, 1998 $1.000 $0.026 ($0.000) $0.026 ($0.026) --
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) --
<CAPTION>
RATIOS TO
AVERAGE
NET ASSETS
Net Asset Net Assets,------------------------
Value, End of Net Net
End of Total Year Operating Investment
Year Return* (millions) Expenses(3) Income
<S> <S> <C> <C> <C> <C>
General Municipal Portfolio
Year ended Nov. 30, 1998 $1.000 2.66% $171.8 0.92%(2) 2.62%(2)
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)
</TABLE>
(1) During the years 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 and 1.01% and 1.90%, respectively, for the year ended
November 1994.
<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 Year Income on Investments Operations Income by Adviser
<S> <C> <C> <C> <C> <C> <C>
California Municipal Portfolio
Year ended Nov. 30, 1998 $1.000 $0.024 -- $0.024 ($0.024) --
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) --
<CAPTION>
RATIOS TO
AVERAGE
NET ASSETS
Net Asset Net Assets,------------------------
Value, End of Net Net
End of Total Year Operating Investment
Year Return* (millions) Expenses(3) Income
<S> <S> <C> <C> <C> <C>
California Municipal Portfolio
Year ended Nov. 30, 1998 $1.000 2.39% $70.4 0.95%(2) 2.36%(2)
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)
</TABLE>
(1) During the years 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 and 0.97% and 1.87%, respectively, for the year ended
November 1994.
<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 Year Income on Investments Operations Income by Adviser
<S> <C> <C> <C> <C> <C> <C>
New York Municipal Portfolio
Year ended Nov. 30, 1998 $1.000 $0.025 -- $0.025 ($0.025) --
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) --
<CAPTION>
RATIOS TO
AVERAGE
NET ASSETS
Net Asset Net Assets,------------------------
Value, End of Net Net
End of Total Year Operating Investment
Year Return* (millions) Expenses(3) Income
<S> <S> <C> <C> <C> <C>
New York Municipal Portfolio
Year ended Nov. 30, 1998 $1.000 2.50% $84.1 0.98%(2) 2.46%(2)
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)
</TABLE>
(1) During the years 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 and 1.01% and 1.71%, respectively, for the year ended
November 1994.
- --------------------------------------
(2) Average net assets for the year ended November 30, 1998 were $161,560,481,
$64,316,012 and $76,292,874 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 (See Note 1g in
Notes to Financial Statements).
* Assumes reinvestment of all dividends and distributions.
25
<PAGE>
================================================================================
REPORT OF INDEPENDENT ACCOUNTANTS
================================================================================
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 Primary Portfolio, Government
Portfolio, General Municipal Portfolio, California Municipal Portfolio and New
York Municipal Portfolio (constituting OCC Cash Reserves, hereafter referred to
as the "Portfolio") at November 30, 1998, 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, 1998 by
correspondence with the custodian and brokers, provide a reasonable basis for
the opinion expressed above.
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, New York 10036
January 22, 1999
26
<PAGE>
================================================================================
TAX INFORMATION (unuadited)
================================================================================
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, 1998) 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
$0.048 and $0.045, 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 exempt from Federal income tax,
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 30.8%,
18.1% and 16.6%, for the General, California and New York Municipal Portfolios,
respectively.
Since the Portfolios' 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 1998. The amounts that will be reported will be the amounts to
use on your 1998 Federal income tax return and will differ from the amounts
which we must report for the Portfolio's fiscal year ended November 30, 1998.
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 income received.
27
<PAGE>
<TABLE>
==============================================================================================
OCC OCC
------------- -------------
CASH RESERVES CASH RESERVES
------------- -------------
==============================================================================================
<S> <C> <C>
Directors and Officers
Joseph M. La Motta Director, President
Paul Y. Clinton Director
Thomas W. Courtney Director
Lacy B. Herrmann Director o Primary Portfolio
George Loft Director o Government Portfolio
Everett Alcenat Vice President o General Municipal Portfolio
Bernard H. Garil Vice President o California Municipal Portfolio
John C. Giusio, Jr. Vice President o New York Municipal Portfolio
Matthew Greenwald Vice President
Benjamin Gutstein Vice President
Susan A. Murphy Vice President Annual Report
Richard L. Peteka Treasurer
Robert J. Brault Assistant Treasurer November 30, 1998
Deborah Kaback Secretary
Maria Camacho Assistant Secretary
Thomas E. Duggan Assistant Secretary
Investment Adviser
OpCap Advisors
Two 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... 18
Statements of Operations............... 19
Statements of Changes in Net Assets.... 20
Notes to Financial Statements.......... 22
Financial Highlights................... 24
Report of Independent Accountants...... 26 Managed by
Tax Information........................ 27 OpCap Advisors
- --------------------------------------------
This report is authorized for distribution only to shareholders and to others
who have received a copy of the prospectus.
==============================================================================================
</TABLE>
