<PAGE>
OCC CASH RESERVES
July 14, 1999
Dear Shareholder:
In the semi-annual period ended May 31, 1999, 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 money market securities. Detailed information about each of the fund's
five Portfolios is presented in the Investment Review and financial statements
that follow.
How times change! Our letter to shareholders in January 1999 noted that the
Federal Reserve lowered the Federal Funds Rate from 5.5% to 4.75%. At the time,
many felt the Federal Reserve would continue to lower the Federal Funds Rate due
to a slow U.S. economy and low inflation. Since last fall, however, global
economic conditions have improved dramatically and the U.S. economy has
continued to grow. Today, the Federal Reserve is concerned about strong growth
and the resulting potential for increased inflation and took the unprecedented
step of publicly acknowledging that concern after their May meeting. Immediately
following their June 29th-30th meeting, the Federal Reserve acted to slow the
economy and raised the Federal Funds Rate from 4.75% to 5.0%. The Fed could
raise interest rates again later in the year if economic activity continues to
remains brisk.
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.
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 the your account please call:
1-800-401-6672
<PAGE>
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INVESTMENT REVIEW
- --------------------------------------------------------------------------------
Primary Portfolio
Objective
Seeks safety of principal, liquidity and maximum current income from investments
in a diversified portfolio of high-quality money market securities. The Primary
Portfolio invests in a range of high-quality securities: marketable obligations
of, or guaranteed by, the United States Government, its agencies or
instrumentalities; U.S. dollar-denominated certificates of deposit and bankers'
acceptances; interest-bearing time deposits; domestic or foreign commercial
paper of prime quality and participation interests in loans of equivalent
quality extended by banks to such companies; and repurchase agreements that are
collateralized in full each day by U.S. Government securities.
Semi-Annual Review
During the six months ended May 31, 1999, the daily dividends of the Primary
Portfolio averaged 4.22% on an annual basis or 4.29% compounded monthly. At May
31, 1999, the Portfolio had a seven-day compounded yield of 4.16%, down from
4.55% at the beginning of the fiscal year. The average maturity of the Portfolio
during the six months ranged from a low of 55 days to a high of 74 days and on
May 31, 1999 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.
Semi-Annual Review
The Government Portfolio's daily dividend averaged 3.99% on an annual basis or
4.05% compounded monthly for the six months ended May 31, 1999. On May 31, 1999,
the seven-day compounded yield of the Portfolio was 3.94%, down from 4.21% at
November 30, 1998. The average maturity of the Portfolio during the six months
ranged from 42 days to 64 days. On May 31, 1999 it was 48 days.
General Municipal Portfolio
Objective
Seeks safety of principal, liquidity and maximum current income that is exempt
from Federal income taxes, from investments in a diversified portfolio of high-
grade municipal money market securities. Types of investments include municipal
notes, short-term municipal bonds, short-term discount notes and participation
interests in any of the foregoing.
Semi-Annual Review
Daily dividends of the General Municipal Portfolio averaged 2.15% on an annual
basis and 2.17% compounded monthly during the six months ended May 31, 1999. 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 3.59%. The seven-day compounded yield on May 31, 1999 was
2.18% compared with the beginning of the fiscal year when it was 2.43%. Average
maturity for the Portfolio ranged from 37 days to 80 days and on May 31, 1999
was 37 days.
California Municipal Portfolio
Objective
Seeks safety of principal, liquidity and maximum current income that is exempt
from Federal and California personal income taxes, from investments in a
diversified portfolio of high-grade municipal money market securities. The
California municipal securities in which the Portfolio invests include municipal
notes, short-term municipal bonds, short-term discounts notes and participation
interest in the foregoing.
Semi-Annual Review
For the six months ended May 31, 1999, the daily dividend averaged 1.99% on an
annual basis and 2.00% 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 3.65%. Between the end of the last fiscal year and May
31, 1999, the seven-day compounded yield increased from 2.07% to 2.13%. The
average maturity of the securities in the Portfolio ranged from 30 days to 68
days and was 31 days on May 31, 1999.
2
<PAGE>
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- --------------------------------------------------------------------------------
New York Municipal Portfolio
Objective
Seeks safety of principal, liquidity and maximum current income that is exempt
from Federal, New York State and New York City income taxes, from investments in
a portfolio of high-grade municipal money market securities. The New York
municipal securities in which the Portfolio invests include municipal notes,
short-term municipal bonds, short-term discount notes and participation
interests in any of the foregoing.
Semi-Annual Review
In the six months ended May 31, 1999, the daily dividends of the Portfolio
averaged 2.04% on an annual basis and 2.06% compounded monthly. This was
equivalent to an effective taxable yield of 3.83% 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 2.18% to 2.12% between the 1998 fiscal year-end and May 31,
1999. The average maturity of the Portfolio ranged between 30 days to 52 days.
On May 31, 1999 it was 31 days.
- --------------------------------------------------------------------------------
YEAR 2000 PROCESSING ISSUE
- --------------------------------------------------------------------------------
Many computer programs in use today use two digits rather than four to
identify the year and cannot distinguish the year 2000 from the year 1900. The
Year 2000 issue affects virtually all companies and governments. The Fund's
investment adviser and distributor have been working on necessary changes to
their computer systems to deal with the Year 2000 issue. The Fund's transfer
agent, custodian, as well as other service providers, have reported that they
are also working on dealing with the issue. There can be no assurance that the
problem will be corrected in all respects or that it will not have a negative
effect on the Fund's operations or results. In addition corporations and
government entities whose securities are owned by the Fund could be adversely
affected by the Year 2000 issue, which could have a negative effect on the
Fund's investment return.
3
<PAGE>
May 31, 1999
- --------------------------------------------------------------------------------
SCHEDULES OF INVESTMENTS (unaudited)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
PRIMARY PORTFOLIO
- --------------------------------------------------------------------------------
Principal
Amount
(000) Value
- --------------------------------------------------------------------------------
U.S. Government Agencies-5.6%
$ 56,300 Federal Home Loan Bank,
5.00%-5.07%,
10/8/99-2/11/00................................... $ 56,300,000
78,000 Student Loan Marketing Association,
5.05%-5.16%,
1/19/00-3/8/00.................................... 78,000,000
-------------
Total U.S. Government Agencies
(amortized cost-$134,300,000)............................... 134,300,000
-------------
Bank Notes-4.0%
95,000 Wachovia Bank, NC,
4.83%-4.99%,
6/30/99-12/28/99
(amortized cost-$95,000,000)...................... 95,000,000
-------------
Certificates of Deposit-10.5%
85,000 Bank of Nova Scotia,
4.85%,
7/12/99-8/9/99.................................... 85,000,000
95,000 Canadian Imperial Bank of Commerce,
4.86%-4.88%,
7/6/99-7/28/99.................................... 95,000,000
70,000 Rabobank Nederland NV,
4.92%-5.06%,
1/28/00-2/7/00.................................... 70,003,189
-------------
Total Certificates of Deposit
(amortized cost-$250,003,189)............................... 250,003,189
-------------
Commercial Paper-79.8%
50,000 Abbey National North America,
4.80%, 7/7/99..................................... 49,760,000
25,000 ABN-Amro North America Finance Inc.,
4.88%, 8/31/99.................................... 24,691,611
90,000 American Express Credit Corp.,
4.78%-4.80%,
6/21/99-7/6/99.................................... 89,668,467
35,000 American General Corp.,
4.81%, 6/2/99..................................... 34,995,324
30,000 American Home Products Corp.,
4.82%, 6/14/99.................................... 29,947,783
30,000 American Telephone & Telegraph Corp.,
4.81%, 6/8/99..................................... 29,971,942
65,000 BankAmerica Corp.,
4.80%,
8/2/99-8/24/99.................................... 64,389,333
$ 12,000 Bank of America FSB,
4.85%, 7/9/99..................................... $11,938,567
50,000 BP America Inc.,
4.92%, 6/1/99..................................... 50,000,000
44,200 British Columbia (Province of),
4.57%-4.77%,
7/20/99-8/9/99.................................... 43,877,724
40,000 Chevron USA Inc.,
4.80%, 6/30/99.................................... 39,845,333
35,000 Daimler-Benz North America Corp.,
4.86%, 8/4/99..................................... 34,697,600
25,000 DaimlerChrysler North America
Holding Corp.,
4.815%, 6/21/99................................... 24,933,125
30,000 Deere (John) Capital Corp.,
4.83%, 7/15/99.................................... 29,822,900
52,700 Diageo Capital plc,
4.80%,
6/16/99-7/6/99.................................... 52,520,733
49,500 Dover Corp.,
4.82%-4.83%,
6/17/99-6/23/99................................... 49,361,987
72,000 First Chicago Financial Corp.,
4.81%-4.83%,
6/7/99-7/19/99.................................... 71,782,264
88,000 Ford Motor Credit Co.,
4.76%-4.83%,
6/9/99-7/8/99..................................... 87,744,498
80,000 General Electric Capital Corp.,
4.81%-4.85%,
7/26/99-8/12/99................................... 79,340,914
2,627 General Electric Co.,
4.88%, 7/26/99.................................... 2,607,414
50,000 General Motors Acceptance Corp.,
4.82%, 7/14/99.................................... 49,712,139
75,000 Glaxo Wellcome plc,
4.79%-4.81%,
6/22/99-8/3/99.................................... 74,531,493
25,000 Goldman Sachs Group L.P.,
4.79%, 6/17/99.................................... 24,946,778
83,000 Halifax plc,
4.78%-4.82%,
6/21/99-7/12/99................................... 82,718,570
77,500 Household Finance Corp.,
4.80%-4.84%,
6/17/99-7/27/99................................... 77,223,578
25,000 IBM Corp.,
4.80%-4.81%,
6/23/99-7/13/99................................... 24,899,908
4
<PAGE>
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- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Principal
Amount
(000) Value
- --------------------------------------------------------------------------------
Commercial Paper (cont'd.)
$ 45,000 Merrill Lynch & Co. Inc.,
4.78%, 6/1/99 $ 45,000,000
50,000 Morgan Stanley Dean Witter & Co.,
4.81%-4.83%,
6/7/99-6/10/99 49,945,713
14,000 Motorola Inc.,
4.78%, 6/14/99 13,975,835
20,000 Norwest Financial Inc.,
4.80%, 6/23/99 19,941,333
25,000 Novartis Finance Corp.,
4.82%, 6/8/99 24,976,569
41,875 Oesterreichische Kontrollbank AG,
4.79%, 9/27/99 41,217,539
90,000 Prudential Funding Corp.,
4.77%-4.81%,
6/14/99-6/28/99 89,751,497
58,000 Rio Tinto America Inc.,
4.84%-4.85%,
7/12/99-8/16/99 57,547,944
85,000 Royal Bank of Canada,
4.72%-4.89%,
9/24/99-5/4/00 84,229,950
22,000 Sears Roebuck Acceptance Corp.
4.79%, 6/24/99 21,932,674
58,000 Skandinaviska Enskilda Banken
Funding Inc.,
4.79%-4.81%,
6/3/99-6/11/99 57,957,918
50,000 Svenska Handelsbanken Inc.,
4.80%-4.81%,
8/10/99-8/11/99 49,529,507
50,000 Swedish Export Credit Corp.,
4.80%-4.85%,
6/7/99-10/1/99 49,573,125
40,000 Toronto-Dominion Holdings USA Inc.,
4.80%, 6/2/99 39,994,667
24,683 US Borax & Chemical Corp.,
4.83%, 6/15/99 24,636,637
-------------
Total Commercial Paper
(amortized cost-$1,906,140,893) 1,906,140,893
-------------
Total Investments
(amortized cost-$2,385,444,082+)... 99.9% $2,385,444,082
Other Assets in Excess
of Liabilities 0.1 2,106,206
----- -------------
Total Net Assets 100.0% $2,387,550,288
----- -------------
- -----------------------------------------------------------------------------
GOVERNMENT PORTFOLIO
- -----------------------------------------------------------------------------
- -----------------------------------------------------------------------------
Principal
Amount
(000) Value
- -----------------------------------------------------------------------------
U.S. Government Agencies-99.9%
Federal Farm Credit Bank-0.1%
$ 100 4.74%, 7/1/99
(amortized cost-$99,605).......................... $ 99,605
-------------
Federal Home Loan Bank-17.5%
307 4.69%, 7/7/99 ................................... 305,560
2,000 4.70%, 6/23/99................................... 1,994,256
2,170 4.71%, 7/9/99.................................... 2,159,211
3,000 4.73%, 7/30/99................................... 2,976,744
1,996 4.75%, 7/16/99................................... 1,984,149
3,000 4.76%, 7/16/99................................... 2,982,150
2,000 5.00%, 2/11/00................................... 2,000,000
1,700 5.07%, 10/8/99................................... 1,700,000
-------------
Total Federal Home Loan Bank
(amortized cost-$16,102,070) 16,102,070
-------------
Federal Home Loan Mortgage Corporation-55.7%
1,000 4.67%, 6/22/99...................................... 997,276
6,220 4.68%, 6/22/99...................................... 6,203,019
200 4.69%, 9/24/99...................................... 197,004
2,000 4.70%, 6/21/99...................................... 1,994,778
3,000 4.70%, 7/15/99...................................... 2,982,767
3,882 4.70%, 8/16/99...................................... 3,843,482
5,000 4.71%, 6/16/99...................................... 4,990,188
4,000 4.71%, 7/12/99...................................... 3,978,543
950 4.71%, 8/9/99....................................... 941,424
5,900 4.72%, 6/21/99...................................... 5,884,529
4,500 4.72%, 6/22/99...................................... 4,487,610
129 4.72%, 7/6/99....................................... 128,408
1,603 4.74%, 6/21/99...................................... 1,598,779
3,000 4.74%, 7/6/99....................................... 2,986,175
3,200 4.75%, 6/7/99....................................... 3,197,467
4,000 4.75%, 6/30/99...................................... 3,984,694
200 4.75%, 7/1/99....................................... 199,208
563 4.75%, 8/26/99...................................... 556,612
2,200 4.76%, 6/11/99...................................... 2,197,091
-------------
Total Federal Home Loan Mortgage Corporation
(amortized cost-$51,349,054) 51,349,054
-------------
5
<PAGE>
May 31, 1999
- --------------------------------------------------------------------------------
SCHEDULES OF INVESTMENTS (unaudited)(continued)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
GOVERNMENT PORTFOLIO (cont'd.)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Principal
Amount
(000) Value
- --------------------------------------------------------------------------------
Federal National Mortgage Association-23.4%
$ 5,000 4.67%, 6/14/99 $ 4,991,568
3,000 4.68%, 8/23/99 2,967,630
1,000 4.71%, 7/26/99 992,804
3,000 4.72%, 6/15/99 2,994,493
25 4.74%, 7/19/99 24,842
3,000 4.74%, 8/5/99 2,974,325
1,000 4.75%, 7/15/99 994,195
3,000 4.755%, 6/17/99 2,993,660
1,000 4.76%, 6/8/99 999,074
127 4.77%, 7/7/99 126,394
250 4.78%, 6/15/99 249,535
1,300 4.81%, 8/26/99 1,285,062
-------------
Total Federal National Mortgage Association
(amortized cost-$21,593,582) 21,593,582
-------------
Student Loan Marketing Association-3.2%
1,000 4.75%, 6/30/99 996,174
2,000 5.05%, 1/19/00 2,000,000
-------------
Total Student Loan Marketing Association
(amortized cost-$2,996,174) 2,996,174
-------------
Total Investments
(amortized cost-$92,140,485+) 99.9% $ 92,140,485
Other Assets in Excess
of Liabilities 0.1 81,365
----- -------------
Total Net Assets 100.0% $ 92,221,850
===== =============
- -----------------------------------------------------------------------------
GENERAL MUNICIPAL PORTFOLIO
- -----------------------------------------------------------------------------
Alaska-1.2%
Valdez Marine Term. Rev.,
Arco Trans. Proj.,
$ 1,000 2.70%, 6/7/99..................................... $ 1,000,000
500 Ser. B, VRDN*
3.30%, 6/1/99...................................... 500,000
-------------
1,500,000
-------------
- --------------------------------------------------------------------------------
Principal
Amount
(000) Value
- --------------------------------------------------------------------------------
Arizona-0.8%
$ 1,000 Arizona Edl. Ln. Mktg. Corp.,
ELR, Ser. A, VRDN*
(LC; Dresdner Bank AG),
3.30%, 6/2/99...................................... $ 1,000,000
-------------
California-2.0%
500 Metropolitan Water
Dist. of Southern California, Ser. B,
2.45%, 6/2/99...................................... 500,000
2,000 Riverside Cnty. TRAN's,
4.50%, 9/30/99..................................... 2,010,644
-------------
2,510,644
-------------
Delaware-1.7%
1,800 Delaware St. EDA, SWDR,
CIBA Specialty,
Ser. A, VRDN*
3.45%, 6/1/99...................................... 1,800,000
300 Delaware St. EDAR,
Delmarva Light & Power Co. Proj.,
VRDN(*) 3.35%, 6/1/99.............................. 300,000
-------------
2,100,000
-------------
Florida-3.3%
1,000 Gainesville Util. Sys. Rev.,
3.15%, 7/6/99...................................... 1,000,000
2,000 Palm Beach Cnty.,
Palm Beach Health Facs.,
(Insd.; MBIA),
2.65%, 6/2/99...................................... 2,000,000
1,250 Putnam Cnty. DA, PCR,
Seminole Elec. Co. Proj.,
Ser. H-1, VRDN*
3.35%, 6/2/99...................................... 1,250,000
-------------
4,250,000
-------------
Hawaii-0.8%
1,000 Hawaii St. Secondary Mkt. Svcs. Corp.,
SLR, Ser. II, VRDN*
(LC; National Westminster Bank plc),
3.35%, 6/2/99...................................... 1,000,000
-------------
Illinois-3.4%
1,000 Chicago Park Dist. TAN's,
4.30%, 9/17/99..................................... 1,002,881
1,945 Illinois St. Health FAR,
Alexandrian Brothers Medical Center,
Ser. 2012, (Insd.; AMBAC),
3.35%, 6/9/99...................................... 1,945,000
1,400 Southwestern DA, SWDR,
Shell Oil Co. Wood River Proj.,
VRDN(*) 3.45%, 6/1/99.............................. 1,400,000
-------------
4,347,881
-------------
6
<PAGE>
- --------------------------------------------------------------------------------
Principal
Amount
(000) Value
- --------------------------------------------------------------------------------
Indiana--2.7%
$ 3,000 City of Indianapolis Gas & Util. Sys.,
2.70%, 6/2/99 $ 3,000,000
400 Whiting Industrial Sewer SWDR,
Amoco Oil Co. Proj., VRDN*
3.45%, 6/1/99...................................... 400,000
-------------
3,400,000
-------------
Kansas--0.8%
1,035 Johnson Cnty. GO,
International Improvements, Ser. A,
3.60%, 9/1/99...................................... 1,035,626
-------------
Kentucky--1.7%
200 Boone Cnty. PCR,
Cincinnati Elec. & Gas Co. Proj.,
Ser. A, VRDN*
(LC; Union Bank of Switzerland),
3.80%, 6/1/99...................................... 200,000
2,000 Kentucky HEL, Student Loan Corp.,
SLR, Ser. E, VRDN*
(Insd.; AMBAC),
3.30%, 6/2/99...................................... 2,000,000
-------------
2,200,000
-------------
Louisiana--1.5%
1,400 East Baton Rouge Parish PCR,
Exxon Proj., VRDN*
3.40%, 6/1/99...................................... 1,400,000
500 St. Charles Parish PCR,
Shell Oil Co., Norco Proj.,
3.45%, 6/1/99...................................... 500,000
-------------
1,900,000
-------------
Maryland--4.7%
Anne Arundel Cnty. EDR,
Baltimore Elec. & Gas Co. Proj., VRDN*
3,000 2.75%, 6/14/99.................................... 3,000,000
2,000 Ser. A,
3.10%, 8/5/99...................................... 2,000,000
1,000 Howard Cnty. GO, Ser. B,
5.60%, 8/15/99..................................... 1,004,615
-------------
6,004,615
-------------
Massachusetts--1.6%
2,000 Gloucester BAN's,
4.00%, 8/5/99...................................... 2,001,200
Nebraska--5.3%
Nebraska HEL Prog.,
Student Loan, (LC; SLMA),
2,100 Ser. A, VRDN*
3.35%, 6/2/99...................................... 2,100,000
$ 1,600 Ser. C, VRDN*
3.35%, 6/2/99 $ 1,600,000
3,000 Omaha Pub. Power Dist.,
Elec. Rev., Ser. A,
3.10%, 6/2/99...................................... 3,000,000
-------------
6,700,000
-------------
Nevada--1.0%
300 Clark Cnty. AIR,
Sub. Lien, Ser. A-2, VRDN*
(LC; Union Bank of Switzerland),
3.45%, 6/2/99...................................... 300,000
1,000 Las Vegas GO,
(Insd.; FGIC),
6.00%, 10/1/99..................................... 1,009,646
-------------
1,309,646
-------------
New Jersey--2.6%
1,300 New Jersey EDAR,
National Gas Facilities,
Ser. A, VRDN*
(Insd.; AMBAC),
3.20%, 6/1/99...................................... 1,300,000
2,000 New Jersey EFAR,
Princeton Univ. Comm.,
Ser. 1997A,
3.05%, 7/19/99..................................... 2,000,000
-------------
3,300,000
-------------
New York--11.3%
Nassau Cnty. GO,
General Improvements,
2,000 Ser. T, (Insd.; FGIC),
5.125%, 9/1/99..................................... 2,008,767
2,445 Ser. W, (Insd.; FGIC),
4.50%, 9/1/99...................................... 2,451,898
Nassau Cnty. IDA,
Civic Facilities Rev., VRDN*
800 Cold Spring Harbor Lab Proj.,
3.30%, 6/1/99...................................... 800,000
800 Winthrop Univ. Hospital Proj.,
(LC; Morgan Guaranty Trust),
3.35%, 6/1/99...................................... 800,000
2,500 New York City GO,
Ser. H5, (Insd.; MBIA),
2.95%, 6/2/99...................................... 2,500,000
3,000 New York St. DAR,
Metropolitan Museum of Art Proj.,
Ser. A, VRDN*
3.00%, 6/2/99...................................... 3,000,000
7
<PAGE>
May 31, 1999
- -------------------------------------------------------------------------------
SCHEDULES OF INVESTMENTS (unaudited)(continued)
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
GENERAL MUNICIPAL PORTFOLIO (cont'd.)
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
Principal
Amount
(000) Value
- -------------------------------------------------------------------------------
New York (cont'd.)
$ 2,800 Triborough Bridge & Tunnel Auth.
Rev.,
Ser. A, 5.00%, 1/1/00 $ 2,833,137
-------------
14,393,802
-------------
Ohio-3.0%
2,750 Ohio St. Building Auth.,
Ser. C, VRDN*
7.35%, 10/1/99 (A)................................. 2,870,833
1,000 Ohio St. University,
General Receipts,
3.20%, 7/19/99..................................... 1,000,000
-------------
3,870,833
-------------
Pennsylvania-6.7%
1,500 Beaver Cnty. ID,
Duquesne Light Co.,
Ser. 1993A, (LC; Union Bank of
Switzerland), 3.40%, 6/21/99....................... 1,500,000
2,500 Carbon Cnty. IDA,
Resource Recovery Board,
Panther Creek Partners
Proj., Ser. 1991A,
(LC; National Westminster Bank plc),
3.40%, 6/14/99..................................... 2,500,000
1,000 Pennsylvania St. HEA,
Carnegie Mellon Univ.,
Ser. D, VRDN*
3.35%, 6/1/99...................................... 1,000,000
2,000 Pennsylvania St. HEA, SLR,
Ser. A, VRDN*
(LC; SLMA),
3.35%, 6/2/99...................................... 2,000,000
1,500 Philadelphia TRAN's, Ser. A,
4.25%, 6/30/99 1,500,706
-------------
8,500,706
-------------
Puerto Rico-0.8%
1,000 Puerto Rico Gov't. Dev. Bank,
3.10%, 6/2/99...................................... 1,000,000
-------------
South Carolina-1.8%
2,300 Berkeley Cnty. Exempt,
Industrial Facilities Rev.,
Amoco Chem. Co. Proj., VRDN*
3.45%, 6/1/99...................................... 2,300,000
-------------
Tennessee-6.1%
$ 2,300 Hamilton Cnty. IDR,
Seaboard Feeds Inc. Proj., VRDN*
(LC; Bank of New York),
3.35%, 6/3/99 $ 2,300,000
3,000 Shelby Cnty. BAN's, Ser. 1998A,
(LC; Landesbank Hessen),
3.20%, 7/9/99...................................... 3,000,000
2,500 Tennessee St. School Board Auth.,
Ser. 1997, (LC; Westdeutsche
Landesbank) 3.15%, 8/12/99......................... 2,500,000
-------------
7,800,000
-------------
Texas-20.3%
1,000 Brazos HEA,
Ser. B-1, VRDN(*)
(CS; SLMA),
3.25%, 6/2/99...................................... 1,000,000
City of Houston GO,
3,000 Ser. B,
2.95%, 6/4/99...................................... 3,000,000
2,000 Ser. C,
3.15%, 8/2/99...................................... 2,000,000
1,000 Dallas Area Rapid Transit,
STR, Ser. A
(LC; Westdeutsche Landesbank),
2.95%, 6/10/99..................................... 1,000,000
4,200 El Paso Water & Sewer,
Ser. A, (LC; Bank of America),
3.05%, 6/14/99..................................... 4,200,000
1,400 Grapevine IDR,
Multiple Mode American Airlines,
Ser. B2, VRDN(*)
(LC; Morgan Guaranty Trust),
3.25%, 6/1/99...................................... 1,400,000
3,000 Harris Cnty. GO, Ser. A,
3.20%, 7/16/99..................................... 3,000,000
Harris Cnty. HFDCR,
St. Lukes Episcopal Hosp.,
100 Ser. A, VRDN(*)
3.25%, 6/1/99...................................... 100,000
300 Ser. B, VRDN(*)
3.25%, 6/1/99...................................... 300,000
400 Lone Star Airport Improvements Auth.,
Multiple Mode,
Ser. B-1, VRDN(*)
(LC; Royal Bank of Canada),
3.25%, 6/1/99...................................... 400,000
8
<PAGE>
- -------------------------------------------------------------------------------
Principal
Amount
(000) Value
- -------------------------------------------------------------------------------
$ 1,400 Lower Colorado River Auth. Tex. Rev.,
Jr. Lien, Ser. 3rd Suppl., VRDN*
(Insd.; MBIA),
3.15%, 6/2/99...................................... $1,400,000
1,050 Round Rock GO,
Independent Sch. Dist., Ser. B,
(Insd.; PSFG),
7.00%, 8/1/99...................................... 1,056,342
500 Texas HEA, Ser. B, VRDN*
(Insd.; FGIC),
3.30%, 6/2/99...................................... 500,000
3,000 Texas St. GO,
2.95%, 8/23/99..................................... 3,000,000
2,500 Texas St. TRAN's,
4.50%, 8/31/99..................................... 2,509,878
1,000 Univ. of Texas,
Sys. Rev., Ser. A,
2.70%, 6/1/99...................................... 1,000,000
-------------
25,866,220
-------------
Utah--3.1%
2,000 Intermountain Pwr. Agy.,
Ser. 1997B-2, (Insd.; AMBAC),
2.75%, 6/1/99...................................... 2,000,000
2,000 Utah St. Brd. Regents SLR,
Ser. L, VRDN*
(Insd.; AMBAC),
3.35%, 6/2/99...................................... 2,000,000
-------------
4,000,000
-------------
Virginia--0.8%
1,000 Commonwealth of Virginia GO,
Ser. 1997,
3.20%, 6/21/99..................................... 1,000,000
-------------
Washington--2.7%
Seattle City,
Municipal Power & Light Rev.,
1,000 2.80%, 6/10/99.................................... 1,000,000
1,500 3.00%, 6/14/99.................................... 1,500,000
1,000 3.10%, 6/10/99.................................... 1,000,000
-------------
3,500,000
-------------
West Virginia--1.9%
2,400 West Virginia Public Energy Auth. Rev.,
Morgantown Assoc. Proj.,
(LC; Union Bank of Switzerland),
3.20%, 7/12/99..................................... 2,400,000
-------------
Wisconsin--4.4%
1,500 Kenosha Univ. TRAN's,
School Dist. No. 001,
3.00%, 10/29/99.................................... 1,500,000
4,079 Wisconsin St. GO,
2.85%, 6/4/99..................................... 4,079,000
-------------
5,579,000
-------------
Wyoming--1.2%
700 Lincoln Cnty. PCR,
Exxon Proj., Ser. B, VRDN*
3.20%, 6/1/99..................................... 700,000
800 Uinta Cnty. PCR, Amoco Proj.,
3.30%, 6/1/99..................................... 800,000
-------------
1,500,000
-------------
Total Investments
(amortized cost--$126,270,173+).... 99.2% $ 126,270,173
Other Assets in Excess
of Liabilities..................... 0.8 1,032,721
----- -------------
Total Net Assets..................... 100.0% $ 127,302,894
===== =============
- -----------------------------------------------------------------------------
CALIFORNIA MUNICIPAL PORTFOLIO
- -----------------------------------------------------------------------------
California--96.2%
$ 2,050 Alameda Cnty.,
Special Tax Dist. Facilities,
7.75%, 9/1/99 (A)................................ $ 2,115,511
290 Alameda Cnty. IDA, Indl. Rev.,
Intermountain Trading, VRDN*
(LC; California St. Tchrs. Ret. Fd.),
3.20%, 6/2/99.................................... 290,000
500 Alameda Contra Costa School FA,
Capital Improvements, Ser. B, VRDN*
(LC; Canadian Imperial Bank
of Commerce),
2.95%, 6/3/99.................................... 500,000
1,800 Anaheim Ctfs. Partn.,
1993 Ref. Projs., VRDN*
(Insd.; AMBAC),
2.95%, 6/2/99.................................... 1,800,000
1,000 California Educational Facilities
Auth. Rev., Stanford University,
Ser. L-3, VRDN*
3.00%, 6/2/99..................................... 1,000,000
California HFFAR,
1,075 Catholic Healthcare West,
Ser. A, (Insd.; MBIA),
4.50%, 7/1/99..................................... 1,075,861
2,100 Hosp. Adventist Hlth. Sys.,
Ser. A, VRDN* (Insd.; MBIA),
3.30%, 6/1/99..................................... 2,100,000
9
<PAGE>
May 31, 1999
- --------------------------------------------------------------------------------
SCHEDULES OF INVESTMENTS (unaudited)(continued)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
CALIFORNIA MUNICIPAL PORTFOLIO
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Principal
Amount
(000) Value
- --------------------------------------------------------------------------------
California (cont'd)
$ 800 Sutter Hlth., Ser. B,
VRDN* (LC; Morgan Guaranty Trust),
3.25%, 6/1/99.......................... $800,000
California PCFA, PCR,
1,100 Pacific Elec. & Gas,
Ser. C, VRDN *
(LC; Bank of America),
3.30%, 6/1/99............................. 1,100,000
2,600 South California Edison,
Ser. C,
2.40%, 6/2/99............................. 2,600,000
1,000 California PCFA, SWDR,
Shell Oil Co. Martinez Proj.,
Ser. B, VRDN *
3.30%, 6/1/99............................. 1,000,000
1,000 California SCD Auth. Multifamily Rev.,
Greenback Manor Apts.,
Ser. A, VRDN *
(LC; East West Bank and FHLB),
3.15%, 6/3/99............................. 1,000,000
California SCD Auth. Rev. Ctfs. Partn.,
1,400 VRDN * (Insd.; MBIA),
2.95%, 6/1/99............................. 1,400,000
1,400 John Muir/Mt. Diablo Hlth.,
VRDN * (Insd.; AMBAC),
2.95%, 6/1/99............................. 1,400,000
California SCD Corp. Rev., ID,
(LC; California St. Tchrs. Ret. Fd.),
605 Florestone Prod. Proj., VRDN *
3.25%, 6/2/99............................. 605,000
1,800 South Bay Circuits Proj., VRDN *
3.25%, 6/2/99............................. 1,800,000
500 Staub Prod. Proj., Ser. A, VRDN *
3.25%, 6/2/99............................. 500,000
1,100 California St. EDAR,
Independent Sys. Proj.,
(LC; Bank of America),
Ser. A, VRDN *
3.25%, 6/1/99............................. 1,100,000
1,300 California St. RAN's,
4.00%, 6/30/99............................ 1,301,205
600 Chula Vista IDR,
San Diego Elec. & Gas Co.,
Ser. A, VRDN *
3.35%, 6/1/99............................. 600,000
City of Los Angeles TRAN's,
2,000 4.00%, 6/30/99........................... 2,000,660
500 4.25%, 6/30/99........................... 500,272
Irvine Ranch WD,
$ 1,600 Ser. A, VRDN *
(LC; Bank of America),
3.20%, 6/1/99 ........................... $1,600,000
1,000 Improvements Dist. No 182,
Ser. A, VRDN *
(LC; Landesbank Hessen),
3.20%, 6/1/99............................. 1,000,000
405 Los Angeles Cnty. MTA,
Second Subordinate STR,
(LC; Canadian Imperial
Bank of Commerce),
3.20%, 6/14/99............................ 405,000
2,500 Los Angeles Cnty. TRAN's, Ser. A,
4.50%, 6/30/99............................ 2,501,587
1,130 Los Angeles Convention & Exhibit Center,
Ctfs. Partn. Auth., Ser. A,
7.00%, 8/15/99 (A)........................ 1,156,322
1,700 Los Angeles Dept. of Power & Water,
(LC; Toronto-Dominion Bank),
3.00%, 8/9/99............................. 1,700,000
1,250 Los Angeles Wastewater System Rev.,
2.45%, 6/2/99............................. 1,250,000
2,500 Marin Cnty. TRAN's,
4.50%, 6/30/99............................ 2,501,821
Metropolitan Water,
Dist. of Southern California, Ser. B,
1,000 2.45%, 6/2/99............................ 1,000,000
2,100 2.90%, 6/7/99............................ 2,100,000
Orange Cnty. Sanitation Dist.,
2,400 Ser. C, VRDN * (Insd.; FGIC),
3.25%, 6/1/99............................. 2,400,000
1,500 Orange Cnty. WD Ctfs. Partn.,
Ser. B, VRDN *
(LC; National Westminster Bank plc),
2.95%, 6/1/99............................. 1,500,000
2,000 Riverside Cnty. TRAN's,
4.50%, 9/30/99............................ 2,010,650
Sacramento MUD, Ser. I,
(LC; Bayerische Landesbank
Girozentrale),
650 3.05%, 7/6/99............................ 650,000
600 3.05%, 8/16/99........................... 600,000
1,500 San Bernardino Cnty. TRAN's,
4.50%, 9/30/99............................ 1,507,529
2,000 San Francisco Bay Area
Rapid Transit Sys.,
(LC; Union Bank of Switzerland),
2.95%, 8/9/99............................. 2,000,000
Santa Barbara Cnty. TRAN's,
2,000 4.50%, 10/1/99........................... 2,008,929
1,000 School Financing Auth.,
4.50%, 6/30/99............................ 1,000,636
10
<PAGE>
- --------------------------------------------------------------------------------
Principal
Amount
(000) Value
- --------------------------------------------------------------------------------
$ 872 Santa Clara Cnty. El Camino Dist.
Hosp. FAR, Lease - VY Med.
Ctr. Proj., Ser. A, VRDN*
(LC; Bayerische Vereinsbank AG),
3.05%, 6/1/99 $ 872,000
1,200 Santa Clara Cnty. FAR,
VMC Fac. Replacement Proj.,
Ser. B, VRDN*
3.05%, 6/2/99 1,200,000
1,100 Southern California Pub. PAR,
Transmission Proj.,
VRDN* (LC; Barclays Bank plc),
2.95%, 6/2/99 1,100,000
300 Stockton MFHR,
Mariners Pointe Assoc., Ser. A,
VRDN* (LC; LaSalle National Bank),
3.00%, 6/2/99 300,000
1,500 University of California,
Board of Regents, Ser. A,
3.15%, 6/17/99 1,500,000
--------------
60,452,983
--------------
Puerto Rico-2.4%
1,500 Puerto Rico Gov't. Dev. Bank,
3.10%, 6/2/99 1,500,000
--------------
Total Investments
(amortized cost-$61,952,983+) 98.6% $ 61,952,983
Other Assets in Excess
of Liabilities 1.4 877,145
--------------
Total Net Assets 100.0% $ 62,830,128
--------------
- -----------------------------------------------------------------------------
NEW YORK MUNICIPAL PORTFOLIO
- -----------------------------------------------------------------------------
New York-95.4%
$ 300 Babylon IDA, RRR,
OFS Equity Babylon Proj., VRDN*
(LC; Union Bank of Switzerland),
3.20%, 6/1/99 $ 300,000
1,000 Broome Cnty., BAN's,
3.50%, 4/5/00 1,003,767
1,002 Dutchess Cnty. GO,
4.00%, 6/15/99 1,002,129
Long Island Power Auth.,
Elec. Sys. Rev., Ser. 3,
(LC; Westdeutsche Landesbank),
2,100 2.65%, 6/2/99 2,100,000
1,000 3.00%, 6/25/99 1,000,000
$ 500 Massapequa USD TAN's,
3.80%, 6/30/99 $ 500,077
1,000 Monroe Cnty. BAN's,
4.00%, 7/23/99 1,000,550
MTA Transit Facilities TRAN's,
Special Obligation,
Ser. CP1-Sub. Ser. B,
(LC; ABN-Amro Bank NV),
2,000 2.55%, 6/2/99 2,000,000
1,000 2.55%, 6/7/99 1,000,000
1,000 2.95%, 6/15/99 1,000,000
3,000 Nassau Cnty. GO,
General Improvements,
Ser. T, (Insd.; FGIC),
5.125%, 9/1/99 3,013,150
100 Nassau Cnty. IDA,
Civic Facilities Rev.,
Cold Spring Harbor Lab Proj., VRDN*
3.30%, 6/1/99 100,000
New York City GO,
600 Ser. B, VRDN*
(Insd.; FGIC),
3.30%, 6/1/99 600,000
1,000 Ser. H5, (Insd.; MBIA),
2.95%, 6/4/99 1,000,000
1,000 Sub. Ser. B2, VRDN*
(LC; Morgan Guaranty Trust),
3.30%, 6/1/99 1,000,000
2,100 New York City IDA,
Civic Facilities Rev.,
National Audubon Society,
VRDN* (LC; Credit Local de France),
3.30%, 6/1/99 2,100,000
New York City MWFA,
2,000 (LC; Westdeutsche Landesbank),
3.15%, 7/9/99 2,000,000
2,000 (LC; Bank of Nova Scotia),
3.20%, 7/9/99 2,000,000
Water & Sewer Sys. Rev.,
540 Ser. A, VRDN* (Insd.; FGIC),
3.50%, 6/1/99 540,000
200 Ser. C, (Insd.; FGIC),
3.30%, 6/1/99 200,000
1,000 New York City Transitional FAR,
Future Tax, Ser. B,
4.00%, 11/15/99 1,004,463
New York City Trust CRR,
1,700 Museum of Broadcasting Proj.,
VRDN* (LC; Kredietbank NV),
3.05%, 6/2/99 1,700,000
1,000 Museum of Modern Art,
Ser. 1, (Insd.; AMBAC),
5.00%, 1/1/00 1,011,828
11
<PAGE>
May 31, 1999
- -------------------------------------------------------------------------------
SCHEDULES OF INVESTMENTS (unaudited)(continued)
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
NEW YORK MUNICIPAL PORTFOLIO (cont'd.)
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
Principal
Amount
(000) Value
- -------------------------------------------------------------------------------
New York (cont'd)
New York St. DAR,
$ 1,800 Cornell University, Ser. B, VRDN*
3.35%, 6/1/99 $1,800,000
Memorial Sloan-Kettering
Cancer Center,
1,000 Ser. 1989A, (LC; Chase
Manhattan Bank),
3.20%, 6/7/99 1,000,000
1,000 Ser. 1996, (LC; Morgan Guaranty Trust),
2.80%, 6/4/99 1,000,000
1,325 Metropolitan Museum of Art Proj.,
Ser. B, VRDN*
3.00%, 6/2/99 1,325,000
505 Miriam Osborn Memorial Home Proj.,
Ser. A, VRDN*
(LC; Banque de Paribas),
3.15%, 6/2/99 505,000
1,900 New York Public Library,
Ser. B, VRDN*
(LC; Canadian Imperial
Bank of Commerce),
3.05%, 6/2/99 1,900,000
1,600 Oxford Univ. Press Inc.,
VRDN* (LC; Landesbank Hessen),
3.10%, 6/2/99 1,600,000
1,000 New York St. Environmental GO,
Ser. 1997A,
2.90%, 6/7/99 1,000,000
3,000 New York St. ERDA, Gas Facilities Rev.,
Brooklyn Union Gas Proj.,
Ser. A2, VRDN* (Insd.; MBIA),
3.15%, 6/2/99 3,000,000
New York St. ERDA, PCR,
200 New York St. Elec. & Gas Proj.,
Ser. D, VRDN*
(LC; First National Bank of Chicago),
3.15%, 6/1/99 200,000
Niagara Mohawk Power Corp. Proj.,
VRDN* (LC; Morgan Guaranty Trust),
1,000 3.55%, 6/1/99 1,000,000
$ 900 Ser. B,
3.55%, 6/1/99 $ 900,000
1,300 Rochester Elec. & Gas Co. Proj.,
Ser. A, VRDN*
(Insd.; MBIA),
3.05%, 6/2/99 1,300,000
1,500 New York St. GO, Ser. U,
2.60%, 6/2/99 1,500,000
New York St. JDA, VRDN*
1,920 Ser. A1-A13,
3.20%, 6/1/99 1,920,000
1,200 Ser. B1-B21,
3.20%, 6/1/99 1,200,000
1,500 New York St. LGAC, Ser. E, VRDN*
(LC; Canadian Imperial
Bank of Commerce),
3.00%, 6/2/99 1,500,000
1,900 New York St. PAR,
(LC; Commerzbank),
3.10%, 7/12/99 1,900,000
421 Niagara Cnty. IDA, IDR,
Pyron Corp. Proj., VRDN*
(LC; Chase Manhattan Bank),
3.20%, 6/2/99 421,000
3,000 Port Auth. of New York & New Jersey,
3.25%, 6/15/99 3,000,000
2,000 Sachem Central School Dist.
Holbrook TAN's,
4.00%, 6/25/99 2,000,505
1,000 Saint Lawrence Cnty. IDA, EIR,
Reynolds Metals Co. Proj., VRDN*
(LC; Royal Bank of Canada),
3.20%, 6/2/99 1,000,000
Suffolk Cnty. TAN's,
2,000 Ser. I, (LC; Credit Local de France),
3.50%, 8/12/99 2,002,722
1,000 Ser. II, (LC; Landesbank Hessen),
4.00%, 9/9/99 1,002,799
450 Wallkill IDA, PCR,
Reynolds Metals Co. Proj.,
VRDN* (LC; Dresdner Bank AG),
3.45%, 6/2/99 450,000
---------------
61,602,990
---------------
12
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Principal
Amount
(000) Value
- --------------------------------------------------------------------------------
Puerto Rico - 3.8%
Puerto Rico Gov't. Dev. Bank,
$ 1,500 3.10%, 6/2/99 $ 1,500,000
1,000 3.15%, 7/6/99 1,000,000
---------------
2,500,000
---------------
Total Investments
(amortized cost-$64,102,990+) 99.2% $ 64,102,990
Other Assets in Excess
of Liabilities 0.8 499,761
----- ---------------
Total Net Assets 100.0% $ 64,602,751
===== ===============
- --------------------------------------------------------------------------------
+ Federal income tax basis of portfolio securities is the same as for
financial reporting purposes.
* Variable Rate Demand Notes (VRDN) are instruments whose interest rates
change on a specified date (such as a coupon date or interest payment date)
and/or whose interest rates vary with changes in a designated base rate
(such as the prime interest rate). Maturity date shown is date of next rate
change.
(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.
13
<PAGE>
May 31, 1999
- --------------------------------------------------------------------------------
SCHEDULES OF INVESTMENTS (unaudited)(continued)
- --------------------------------------------------------------------------------
General Abbreviations:
AIR Airport Improvement Revenue
AMBAC American Mortgage Bond Assurance Corporation
BAN Bond Anticipation Note
CRR Cultural Resources Revenue
CS Credit Support
DA Development Authority
DAR Dormitory Authority Revenue
EDA Economic Development Authority
EDAR Economic Development Authority Revenue
EDR Economic Development Revenue
EEIR Education Equipment & Improvement Revenue
EFAR Environmental Facilities Authority Revenue
EFC Environmental Facilities Corporation
EIR Environment Improvement Revenue
ELR Educational Loan Revenue
ERDA Energy Research & Development Authority
FA Finance Authority
FAR Finance Authority Revenue
FGIC Financial Guaranty Insurance Corporation
FHLB Federal Home Loan Bank
GO General Obligation
HEA Higher Education Authority
HEAA Higher Education Assistance Revenue
HEL Higher Education Loan
HFDCR Health Facilities Development Corporation Revenue
HFFAR Health Facilities Financing Authority Revenue
ID Industrial Development
IDA Industrial Development Authority
IDR Industrial Development Revenue
JDA Job Development Authority
LC Letter of Credit
LGAC Local Government Assistance Corp.
MBIA Municipal Bond Investors Assurance
MFHR Multiple Family Housing Revenue
MTA Metropolitan Transportation Authority
MUD Municipal Utility District
MWFA Municipal Water Finance Authority
PAR Power Authority Revenue
PCFA Pollution Control Financing Authority
PCR Pollution Control 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
TAN Tax Anticipation Note
TRAN Tax Revenue Anticipation Note
USD Unified School District
WD Water District
14
<PAGE>
May 31, 1999
- -------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES (unaudited)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
-------- ---------- --------- ----------- ----------
General California New York
Primary Government Municipal Municipal Municipal
Portfolio Portfolio Portfolio Portfolio Portfolio
--------- ---------- --------- ----------- ----------
<S> <C> <C> <C> <C> <C>
Assets
Investments, at value
(amortized cost -
$2,385,444,082, $92,140,485,
$126,270,173, $61,952,983 and
$64,102,990, respectively) $2,385,444,082 $ 92,140,485 $ 126,270,173 $ 61,952,983 $ 64,102,990
Cash 172,656 103,543 42,685 94,962 119,180
Receivable from capital stock sold. 74,309 - - - 939
Interest receivable 5,574,113 123,095 1,127,128 847,601 460,268
Prepaid expenses and other assets. 89,625 15,831 16,644 3,616 3,351
-------------- -------------- -------------- -------------- ---------------
Total Assets 2,391,354,785 92,382,954 127,456,630 62,899,162 64,686,728
-------------- -------------- -------------- -------------- ---------------
Liabilities
Payable for capital stock redeemed 2,745 4,404 11,850 - 2,006
Investment advisory fee payable... 132,997 6,318 8,514 4,308 4,448
Distribution fee payable 81,411 3,159 4,349 2,154 2,224
Dividends payable 2,910,027 109,136 84,739 40,377 41,771
Other payables and accrued
expenses 677,317 38,087 44,284 22,195 33,528
-------------- -------------- -------------- -------------- ---------------
Total Liabilities 3,804,497 161,104 153,736 69,034 83,977
-------------- -------------- -------------- -------------- ---------------
Total Net Assets $2,387,550,288 $ 92,221,850 $ 127,302,894 $ 62,830,128 $ 64,602,751
============== ============== ============== ============== ===============
Composition of Net Assets
Par value ($.0001 per share,
10 billion shares
authorized for each portfolio)... $ 238,758 $ 9,224 $ 12,739 $ 6,286 $ 6,463
Paid-in-capital in excess of par 2,387,306,750 92,211,908 127,335,140 62,855,289 64,620,883
Accumulated net realized gain
(loss) on investments 4,780 718 (44,985) (31,447) (24,595)
-------------- -------------- -------------- -------------- ---------------
Total Net Assets $2,387,550,288 $ 92,221,850 $ 127,302,894 $ 62,830,128 $ 64,602,751
============== ============== ============== ============== ===============
Shares outstanding 2,387,584,678 92,243,325 127,390,383 62,861,576 64,627,346
-------------- -------------- -------------- -------------- ---------------
Net asset value per share $1.00 $1.00 $1.00 $1.00 $1.00
============== ============== ============== ============== ===============
</TABLE>
See accompanying notes to financial statements.
15
<PAGE>
Six months ended May 31, 1999
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
-------- ---------- --------- ----------- ----------
General California New York
Primary Government Municipal Municipal Municipal
Portfolio Portfolio Portfolio Portfolio Portfolio
--------- ---------- --------- ----------- ----------
<S> <C> <C> <C> <C> <C>
Investment Income
Interest $62,457,410 $ 2,515,079 $ 2,173,635 $ 971,065 $ 1,150,848
----------- ----------- ----------- ----------- -----------
Operating Expenses
Investment advisory fee 5,052,290 253,540 342,413 167,874 193,475
Distribution fee 3,095,352 127,259 176,379 83,937 96,737
Transfer and dividend
disbursing agent fees 791,570 22,888 31,965 9,979 24,104
Administrative services fee 618,227 25,004 35,296 16,788 18,737
Shareholder services fee 258,185 11,246 15,697 6,940 10,275
Custodian fees 81,892 18,712 22,317 9,252 10,610
Reports and notices to
shareholders 79,467 1,711 2,564 854 854
Directors' fees and expenses 97,909 4,134 5,789 2,698 3,025
Audit fees 22,639 7,249 7,287 7,210 7,210
Registration fees 15,045 7,944 9,189 881 1,072
Legal fees 5,753 254 388 160 189
Miscellaneous 92,786 3,805 5,146 1,682 1,982
----------- ----------- ----------- ----------- -----------
Total operating expenses 10,211,115 483,746 654,430 308,255 368,270
Less: Expenses offset (3,906) (802) (1,194) (1,574) (1,655)
----------- ----------- ----------- ----------- -----------
Net operating expenses 10,207,209 482,944 653,236 306,681 366,615
----------- ----------- ----------- ----------- -----------
Net investment income 52,250,201 2,032,135 1,520,399 664,384 784,233
Net realized gain
on investments 5,436 458 6,476 - -
----------- ----------- ----------- ----------- -----------
Net increase in net assets
resulting from operations $52,255,637 $ 2,032,593 $ 1,526,875 $ 664,384 $ 784,233
=========== =========== =========== =========== ===========
</TABLE>
See accompanying notes to financial statements.
16
<PAGE>
Intentionally Left Blank
17
<PAGE>
- -------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
------------------------------------- -------------------------------------
Primary Portfolio Government Portfolio
------------------------------------- -------------------------------------
Six months ended Year ended Six months ended Year ended
May 31, 1999 (a) November 30, 1998 May 31, 1999 (a) November 30, 1998
----------------- ----------------- ---------------- -----------------
<S> <C> <C> <C> <C>
Operations
Net investment income $ 52,250,201 $ 107,471,188 $ 2,032,135 $ 4,285,012
Net realized gain (loss)
on investments 5,436 449 458 523
----------------- ----------------- ---------------- -----------------
Net increase in net assets
resulting from operations 52,255,637 107,471,637 2,032,593 4,285,535
----------------- ----------------- ---------------- -----------------
Dividends and Distributions
to Shareholders
Net investment income (52,250,201) (107,471,188) (2,032,135) (4,285,012)
Net realized gains - - - -
----------------- ----------------- ---------------- -----------------
Total dividends and
distributions to shareholders (52,250,201) (107,471,188) (2,032,135) (4,285,012)
----------------- ----------------- ---------------- -----------------
Capital Stock Transactions
Net proceeds from sales 8,393,501,407 14,416,847,565 203,242,971 642,903,095
Reinvestment of dividends
and distributions 52,670,464 106,839,942 2,054,746 4,257,414
Cost of shares redeemed (8,631,065,673) (14,117,821,757) (225,222,234) (634,993,342)
----------------- ----------------- ---------------- -----------------
Net increase (decrease) in
net assets from capital
stock transactions (184,893,802) 405,865,750 (19,924,517) 12,167,167
----------------- ----------------- ---------------- -----------------
Total increase (decrease) in
net assets (184,888,366) 405,866,199 (19,924,059) 12,167,690
Net Assets
Beginning of period 2,572,438,654 2,166,572,455 112,145,909 99,978,219
----------------- ----------------- ---------------- -----------------
End of period $ 2,387,550,288 $ 2,572,438,654 $ 92,221,850 $ 112,145,909
================= ================= ================ =================
</TABLE>
- ------------------------------------
(a) Unaudited
See accompanying notes to financial statements.
18
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------ ----------------------------------- -----------------------------------
General Municipal Portfolio California Municipal Portfolio New York Municipal Portfolio
- ------------------------------------ ------------------------------------ -----------------------------------
Six months ended Year ended Six months ended Year ended Six months ended Year ended
May 31, 1999 (a) November 30, 1998 May 31, 1999 (a) November 30, 1998 May 31, 1999 (a) November 30, 1998
- ---------------- ----------------- ----------------- ----------------- ----------------- ----------------
<S> <C> <C> <C> <C> <C>
$ 1,520,399 $ 4,240,610 $ 664,384 $ 1,515,431 $ 784,233 $ 1,876,324
6,476 (709) - - - -
- ---------------- ----------------- ----------------- ----------------- ----------------- ----------------
1,526,875 4,239,901 664,384 1,515,431 784,233 1,876,324
- ---------------- ----------------- ----------------- ----------------- ----------------- ----------------
(1,520,399) (4,240,610) (664,384) (1,515,431) (784,233) (1,876,324)
- - - - - -
- ---------------- ----------------- ----------------- ----------------- ----------------- ----------------
(1,520,399) (4,240,610) (664,384) (1,515,431) (784,233) (1,876,324)
- ---------------- ----------------- ----------------- ----------------- ----------------- ----------------
474,619,979 1,032,098,542 210,193,839 429,969,028 232,182,331 500,835,718
1,557,600 4,223,116 668,644 1,513,776 795,137 1,879,639
(520,697,187) (1,001,476,568) (218,424,926) (416,803,566) (252,523,022) (491,805,768)
- ---------------- ----------------- ----------------- ----------------- ----------------- ----------------
(44,519,608) 34,845,090 (7,562,443) 14,679,238 (19,545,554) 10,909,589
- ---------------- ----------------- ----------------- ----------------- ----------------- ----------------
(44,513,132) 34,844,381 (7,562,443) 14,679,238 (19,545,554) 10,909,589
171,816,026 136,971,645 70,392,571 55,713,333 84,148,305 73,238,716
- ---------------- ----------------- ----------------- ----------------- ----------------- ----------------
$ 127,302,894 $ 171,816,026 $ 62,830,128 $ 70,392,571 $ 64,602,751 $ 84,148,305
================ ================= ================= ================= ================= ================
</TABLE>
19
<PAGE>
May 31, 1999
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (unaudited)
- --------------------------------------------------------------------------------
1. Organization and Significant Accounting Policies
OCC Cash Reserves (the "Fund") is registered under the Investment Company
Act of 1940 as an open-end management investment company. The Fund has five
portfolios: the Primary Portfolio ("Primary"), the Government Portfolio
("Government"), the General Municipal Portfolio ("General"), the California
Municipal Portfolio ("California") and the New York Municipal Portfolio ("New
York"). Each Portfolio is considered to be a separate entity for financial
reporting and tax purposes. OpCap Advisors ( the "Adviser") and OCC Distributors
( the "Distributor"), both affiliates of Oppenheimer Capital, serve as each
Portfolio's adviser and distributor, respectively.
The preparation of the financial statements in accordance with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts and disclosures in the financial
statements. The following is a summary of significant accounting policies
consistently followed by the Fund in the preparation of its financial
statements:
(a) Valuation of Investments
Each Portfolio values its investments on the basis of amortized cost which
approximates market value. The amortized cost method involves valuing a security
at cost on the date of purchase and thereafter assuming a constant dollar
amortization to maturity of the difference between the principal amount due at
maturity and the initial cost of the security.
(b) Federal Income Taxes
Each Portfolio intends to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and distributes
substantially all of its taxable and non-taxable income to its shareholders;
accordingly, no Federal income tax provision is required.
(c) Securities Transactions and Other Income
Securities transactions are accounted for on the trade date. Cost of
securities sold is determined on the basis of identified cost. Interest income
is accrued as earned. Premiums are amortized and discounts are accreted to
interest income over the lives of the respective securities.
(d) Dividends and Distributions
Dividends from net investment income are declared daily and paid monthly by
each Portfolio. Distributions of net realized short-term capital gains, if any,
are declared and paid at least annually by each Portfolio.
(e) Repurchase Agreements
Each Portfolio may enter into repurchase agreements as part of its
investment program. The Portfolios' custodian takes possession of 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 an expense offset arrangement 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
The Fund has adopted a retirement plan that provides for payments upon
retirement to independent directors based upon 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. For the six
months ended May 31, 1999, expenses accrued for the retirement plan were:
Primary $42,179; Government $1,782; General $2,493; California $1,163 and New
York $1,303.
20
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
2. Investment Advisory Fee and Distribution Fee
(a) Under the Investment Advisory Agreement, each Portfolio pays the
Adviser a monthly investment advisory fee at the annual rate of .50% on the
first $100 million of average daily net assets, .45% on the next $200 million of
average daily net assets, and .40% on average daily net assets in excess of $300
million. The Adviser has agreed to waive and/or reimburse a Portfolio to the
extent that total operating expenses of the Portfolio exceed 1.00% of its
average daily net assets (net of expenses offset) for any fiscal year. For the
six months ended May 31, 1999, there were no waivers or reimbursements.
(b) Under the Distribution Assistance Plan each Portfolio pays the Adviser
a monthly fee at an annual rate of .25% of its average daily net assets and the
Adviser uses such amounts in their entirety for (i) payments to broker-dealers,
banks and other financial intermediaries for their distribution assistance for
their distribution assistance provided to the Portfolio and (ii) otherwise
promoting the sale of shares of the Fund.
3. Purchases and Sales of Securities
For the six months ended May 31, 1999, purchases and sales/maturities of
investment securities were: Primary $8,174,170,021 and $8,356,355,105;
Government $593,446,173 and $614,994,273; General $315,640,063 and $351,998,584;
California $178,345,079 and $185,647,000; and New York $182,175,320 and
$198,627,000, respectively.
4. Financial Instruments and Associated Risks
Each Portfolio invests in issues with a remaining maturity of thirteen
months or less and are rated high quality by a nationally recognized statistical
rating organization or, if not rated, are judged by the Adviser to be of
comparable quality. Primary maintains portfolio diversification to reduce
investment risk by not investing more than 25% of its total assets in securities
of issuers conducting their principal business activities in any one industry,
except that under normal circumstances at least 25% of its total assets will be
invested in bank obligations. At May 31, 1999, major industry concentrations
were as follows: Banking - 38.7%, Finance - 10.3%, Automotive - 8.3%, U.S.
Government Agencies - 5.6% and Diversified - 5.5%. 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 diversified portfolios of short-
term obligations issued by the States of California and New York, respectively,
and their political subdivisions. Issuers' abilities to meet their obligations
may be affected by economic and political developments in a specific state,
region or industry. Certain short-term debt obligations held by the Portfolios
may be entitled to the benefit of standby letters of credit or other guarantees
of banks or other financial institutions.
21
<PAGE>
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (For a share outstanding throughout each period)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INCOME FROM
INVESTMENT OPERATIONS
---------------------------------------------
Net Asset Net Total
Value, Net Realized Income from
Beginning Investment Gain/(Loss) Investment
of Period Income on Investments Operations
<S> <C> <C> <C> <C>
Primary Portfolio
Six months ended
May 31, 1999 (5) $1.000 $0.021 $0.000 $0.021
Year ended Nov. 30, 1998 1.000 0.048 0.000 0.048
Year ended Nov. 30, 1997 1.000 0.047 (0.000) 0.047
Year ended Nov. 30, 1996 1.000 0.046 (0.000) 0.046
Year ended Nov. 30, 1995 1.000 0.051 0.000 0.051
Year ended Nov. 30, 1994 1.000 0.032 0.000 0.032
<CAPTION>
DIVIDENDS
AND DISTRIBUTIONS
-------------------------------------------------------------
Dividends to
Shareholders Distributions Total Dividends Net Assets
from Net to Shareholders and Distributions Value
Investment from Net to End of Total
Income Realized Gains Shareholders Period Return*
<S> <C> <C> <C> <C> <C>
Primary Portfolio
Six months ended
May 31, 1999 (5) ($0.021) - ($0.021) $1.000 4.30%(4)
Year ended Nov. 30, 1998 (0.048) - (0.048) 1.000 4.90%
Year ended Nov. 30, 1997 (0.047) - (0.047) 1.000 4.85%
Year ended Nov. 30, 1996 (0.046) ($0.000) (0.046) 1.000 4.69%
Year ended Nov. 30, 1995 (0.051) (0.000) (0.051) 1.000 5.19%
Year ended Nov. 30, 1994 (0.032) (0.000) (0.032) 1.000 3.26%
<CAPTION>
RATIOS TO
AVERAGE
NET ASSETS
-------------------------
Net Assets,
End of Net Net
Period Operating Investment
(millions) Expenses (3) Income
Primary Portfolio
Six months ended
<S> <C> <C> <C>
May 31, 1999(5) $2,387.6 0.82%(2,4) 4.22%(2,4)
Year ended Nov. 30, 1998 2,572.4 0.83% 4.78%
Year ended Nov. 30, 1997 2,166.6 0.85% 4.75%
Year ended Nov. 30, 1996 1,712.6 0.91% 4.60%
Year ended Nov. 30, 1995 1,671.1 0.94% 5.07%
Year ended Nov. 30, 1994 1,453.8 0.91% 3.21%
<CAPTION>
Government Portfolio
INCOME FROM
INVESTMENT OPERATIONS
---------------------------------------------
Net Asset Net Total
Value, Net Realized Income from
Beginning Investment Gain/(Loss) Investment
of Period Income on Investments Operations
<S> <C> <C> <C> <C>
Six months ended
May 31, 1999 (5) $1.000 $0.020 $0.000 $0.020
Year ended Nov. 30, 1998 1.000 0.045 0.000 0.045
Year ended Nov. 30, 1997 1.000 0.045 (0.000) 0.045
Year ended Nov. 30, 1996 1.000 0.044 (0.000) 0.044
Year ended Nov. 30, 1995 1.000 0.049 0.000 0.049
Year ended Nov. 30, 1994 1.000 0.031 0.000 0.031
<CAPTION>
DIVIDENDS
AND DISTRIBUTIONS
-------------------------------------------------------------
Dividends to
Shareholders Distributions Total Dividends Net Assets
from Net to Shareholders and Distributions Value
Investment from Net to End of Total
Income Realized Gains Shareholders Period Return*
<S> <C> <C> <C> <C> <C>
Six months ended
May 31, 1999 (5) ($0.020) - ($0.020) $1.000 4.06%(4)
Year ended Nov. 30, 1998 (0.045) - (0.045) 1.000 4.63%
Year ended Nov. 30, 1997 (0.045) - (0.045) 1.000 4.60%
Year ended Nov. 30, 1996 (0.044) ($0.000) (0.044) 1.000 4.51%
Year ended Nov. 30, 1995 (0.049) (0.000) (0.049) 1.000 5.02%
Year ended Nov. 30, 1994 (0.031) - (0.031) 1.000 3.12%
<CAPTION>
RATIOS TO
AVERAGE
NET ASSETS
-------------------------
Net Assets,
End of Net Net
Period Operating Investment
(millions) Expenses (3) Income
<S> <C> <C> <C>
Six months ended
May 31, 1999 (5) $92.2 0.95%(2,4) 3.99%(2,4)
Year ended Nov. 30, 1998 112.1 0.98%(1) 4.53%(1)
Year ended Nov. 30, 1997 100.0 0.98%(1) 4.51%(1)
Year ended Nov. 30, 1996 101.1 1.00%(1) 4.41%(1)
Year ended Nov. 30, 1995 108.6 1.00%(1) 4.91%(1)
Year ended Nov. 30, 1994 113.2 0.95%(1) 3.08%(1)
</TABLE>
(1) During the periods noted above, the Adviser waived a portion of its fees. If
such waivers had not been in effect, the ratios of net operating expenses to
average net assets and the ratios of net investment income to average net
assets would have been 0.97% and 4.52%, respectively, for the year ended
November 30, 1998, 0.99% and 4.50%, respectively, for the year ended
November 30, 1997, 1.00% and 4.41%, respectively, for the year ended
November 30, 1996, 1.02% and 4.89%, respectively, for the year ended
November 30, 1995, and 0.97% and 3.06%, respectively, for the year ended
November 30, 1994.
- ----------------------------------------
(2) Average net assets for the six months ended May 31, 1999 were $2,483,084,978
and $102,086,665 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).
(4) Annualized
(5) Unaudited
* Assumes reinvestment of all dividends and distributions.
22
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INCOME FROM
INVESTMENT OPERATIONS
---------------------------------------
Dividends to
Net Asset Net Total Shareholders Net Asset
Value, Net Realized Income from from Net Capital Value,
Beginning Investment Gain/(Loss) Investment Investment Contribution End of
of Period Income on Investments Operations Income by Adviser Period
<S> <C> <C> <C> <C> <C> <C> <C>
General Municipal Portfolio
Six months ended
May 31, 1999 (5) $1.000 $0.011 $0.000 $0.011 ($0.011) - $1.000
Year ended Nov. 30, 1998 1.000 0.026 (0.000) 0.026 (0.026) - 1.000
Year ended Nov. 30, 1997 1.000 0.027 (0.000) 0.027 (0.027) - 1.000
Year ended Nov. 30, 1996 1.000 0.025 0.000 0.025 (0.025) - 1.000
Year ended Nov. 30, 1995 1.000 0.031 0.000 0.031 (0.031) - 1.000
Year ended Nov. 30, 1994 1.000 0.020 (0.000) 0.020 (0.020) - 1.000
<CAPTION>
RATIOS TO
AVERAGE
NET ASSETS
-------------------------
Net Assets
End of Net Net
Total Period Operating Investment
Return* (millions) Expenses (3) Income
General Municipal Portfolio
<S> <C> <C> <C> <C>
Six months ended
May 31, 1999 (5) 2.17%(4) $127.3 0.93%(2,4) 2.16%(2,4)
Year ended Nov. 30, 1998 2.66% 171.8 0.92% 2.62%
Year ended Nov. 30, 1997 2.74% 137.0 0.96%(1) 2.70%(1)
Year ended Nov. 30, 1996 2.56% 122.3 0.99%(1) 2.53%(1)
Year ended Nov. 30, 1995 3.11% 116.0 0.93%(1) 3.07%(1)
Year ended Nov. 30, 1994 2.04% 108.7 0.90%(1) 2.01%(1)
</TABLE>
(1) During the periods noted above, the Adviser waived a portion of its fees. If
such waivers had not been in effect, the ratios of net operating expenses to
average net assets and the ratios of net investment income to average net
assets would have been 0.96% and 2.70%, respectively, for the year ended
November 30, 1997, 0.99% and 2.53%, respectively, for the year ended
November 30, 1996, 1.02% and 2.98%, respectively, for the year ended
November 30, 1995 and 1.01% and 1.90%, respectively, for the year ended
November 30, 1994.
<TABLE>
<CAPTION>
INCOME FROM
INVESTMENT OPERATIONS
---------------------------------------
Dividends to
Net Asset Net Total Shareholders Net Asset
Value, Net Realized Income from from Net Capital Value,
Beginning Investment Gain/(Loss) Investment Investment Contribution End of
of Period Income on Investments Operations Income by Adviser Period
<S> <C> <C> <C> <C> <C> <C> <C>
California Municipal Portfolio
Six months ended
May 31, 1999 (5) $1.000 $0.010 - $0.010 ($0.010) - $1.000
Year ended Nov. 30, 1998 1.000 0.024 - 0.024 (0.024) - 1.000
Year ended Nov. 30, 1997 1.000 0.026 ($0.000) 0.026 (0.026) - 1.000
Year ended Nov. 30, 1996 1.000 0.024 - 0.024 (0.024) - 1.000
Year ended Nov. 30, 1995 1.000 0.031 (0.008) 0.023 (0.031) $0.008 1.000
Year ended Nov. 30, 1994 1.000 0.020 (0.000) 0.020 (0.020) - 1.000
<CAPTION>
RATIOS TO
AVERAGE
NET ASSETS
-------------------------
Net Assets
End of Net Net
Total Period Operating Investment
Return* (millions) Expenses (3) Income
California Municipal Portfolio
<S> <C> <C> <C> <C>
Six months ended
May 31, 1999 (5) 2.01%(4) $62.8 0.91%(2,4) 1.98%(2,4)
Year ended Nov. 30, 1998 2.39% 70.4 0.95% 2.36%
Year ended Nov. 30, 1997 2.68% 55.7 0.90%(1) 2.64%(1)
Year ended Nov. 30, 1996 2.42% 53.4 0.85%(1) 2.42%(1)
Year ended Nov. 30, 1995 3.10% 75.9 0.82%(1) 3.05%(1)
Year ended Nov. 30, 1994 1.99% 61.3 0.85%(1) 1.99%(1)
</TABLE>
(1) During the periods noted above, the Adviser waived a portion of its fees. If
such waivers had not been in effect, the ratios of net operating expenses to
average net assets and the ratios of net investment income to average net
assets would have been 0.96% and 2.58%, respectively, for the year ended
November 30, 1997, 0.97% and 2.30%, respectively, for the year ended
November 30, 1996, 0.95% and 2.92%, respectively, for the year ended
November 30, 1995 and 0.97% and 1.87%, respectively, for the year ended
November 30, 1994.
<TABLE>
<CAPTION>
INCOME FROM
INVESTMENT OPERATIONS
---------------------------------------
Dividends to
Net Asset Net Total Shareholders Net Asset
Value, Net Realized Income from from Net Capital Value,
Beginning Investment Gain/(Loss) Investment Investment Contribution End of
of Period Income on Investments Operations Income by Adviser Period
<S> <C> <C> <C> <C> <C> <C> <C>
New York Municipal Portfolio
Six months ended
May 31, 1999 (5) $1.000 $0.010 - $0.010 ($0.010) - $1.000
Year ended Nov. 30, 1998 1.000 0.025 - 0.025 (0.025) - 1.000
Year ended Nov. 30, 1997 1.000 0.026 ($0.000) 0.026 (0.026) - 1.000
Year ended Nov. 30, 1996 1.000 0.025 - 0.025 (0.025) - 1.000
Year ended Nov. 30, 1995 1.000 0.030 0.000 0.030 (0.030) - 1.000
Year ended Nov. 30, 1994 1.000 0.019 (0.000) 0.019 (0.019) - 1.000
<CAPTION>
RATIOS TO
AVERAGE
NET ASSETS
-------------------------
Net Assets
End of Net Net
Total Period Operating Investment
Return* (millions) Expenses (3) Income
<S> <C> <C> <C> <C>
New York Municipal Portfolio
Six months ended
May 31, 1999 (5) 2.06%(4) $64.6 0.95%(2,4) 2.03%(2,4)
Year ended Nov. 30, 1998 2.50% 84.1 0.98% 2.46%
Year ended Nov. 30, 1997 2.66% 73.2 0.98%(1) 2.63%(1)
Year ended Nov. 30, 1996 2.50% 60.0 0.97%(1) 2.45%(1)
Year ended Nov. 30, 1995 3.07% 52.3 0.79%(1) 3.02%(1)
Year ended Nov. 30, 1994 1.92% 48.0 0.82%(1) 1.90%(1)
</TABLE>
(1) During the periods noted above, the Adviser waived a portion of its fees. If
such waivers had not been in effect, the ratios of net operating expenses to
average net assets and the ratios of net investment income to average net
assets would have been 0.98% and 2.62%, respectively, for the year ended
November 30, 1997, 0.98% and 2.44%, respectively, for the year ended
November 30, 1996, 1.00% and 2.81%, respectively, for the year ended
November 30, 1995 and 1.01% and 1.71%, respectively, for the year ended
November 30, 1994.
- ----------------------------------
(2) Average net assets for the six months ended May 31, 1999 were $141,490,703,
$67,333,970 and $77,602,469 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).
(4) Annualized
(5) Unaudited
(*) Assumes reinvestment of all dividends and distributions.
23
<PAGE>
- --------------------------------------------------------------------------------
[LOGO OF OCC APPEARS HERE] [LOGO OF OCC APPEARS HERE]
- --------------------------------------------------------------------------------
Directors and Officers
Joseph M. La Motta Director, President
Paul Y. Clinton Director
Thomas W. Courtney Director
Lacy B. Herrmann Director
George Loft Director
Everett Alcenat Vice President
Bernard H. Garil Vice President
John C. Giusio, Jr. Vice President
Matthew Greenwald Vice President
Benjamin Gutstein Vice President
Susan A. Murphy Vice President
Lawrence K. Becker Treasurer
Deborah Kaback Secretary
Maria Camacho Assistant Secretary
Investment Adviser
OpCap Advisors
Two World Financial Center
New York, NY 10281
Distributor
OCC Distributors
One World Financial Center
New York, NY 10281
Custodian, Transfer and Shareholder Servicing Agent
State Street Bank and Trust Company
P.O. Box 8505
Boston, MA 02266
- --------------------------------------------------------------------------------
Table of Contents
President's Letter 1
Investment Review 2
Year 2000 Processing Issue 3
Schedules of Investments 4
Statements of Assets and Liabilities 15
Statements of Operations 16
Statements of Changes in Net Assets 18
Notes to Financial Statements 20
Financial Highlights 22
- --------------------------------------------------------------------------------
This report is authorized for distribution only to shareholders and to others
who have received a copy of the prospectus.
. Primary Portfolio
. Government Portfolio
. General Municipal Portfolio
. California Municipal Portfolio
. New York Municipal Portfolio
Semi-Annual Report
May 31, 1999
Managed by
OpCap Advisors
