<PAGE>
OCC CASH RESERVES
January 10, 2000
OCC Cash Reserves
1345 Avenue of the Americas
New York, N.Y. 10105
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
Dear Shareholder:
We are pleased to report on the investment activities of OCC Cash Reserves (the
"Fund") for the fiscal year ended November 30, 1999.
During the twelve months ended November 30, 1999, the Fund's portfolios
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 for each of the Fund's five portfolios
is presented in the Investment Review and financial statements that follow.
Since our last report to shareholders in the summer of 1999, the Federal Reserve
(the "Fed") raised the Federal Funds Rate from 5.0% to 5.5%, the third increase
this year, offsetting 1998's three interest rate reductions. The Fed's caution
resulted from strong global and domestic economic conditions and the implied
threat of rising inflation. The Fed is determined to keep inflation under
control and higher interest rates should eventually slow economic growth. So
far, however, the economy remains brisk while inflation remains remarkably tame.
If the domestic economy continues to grow rapidly and wage pressures build, we
expect that the Fed will raise interest rates again in 2000. In the meantime,
investors in money market funds are earning higher yields.
Regardless of what the Fed may do in the future, OpCap Advisors will continue to
seek to provide after-tax income in excess of the rate of inflation while
preserving our shareholders' capital.
We at the Fund 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. LaMotta
Joseph M. LaMotta
President
<PAGE>
- --------------------------------------------------------------------------------
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
Primary Portfolio
Objective
Seeks safety of principal, liquidity and maximum current income from investments
in a diversified portfolio of high-quality money market securities. The Primary
Portfolio invests in a range of high-quality securities: marketable obligations
of, or guaranteed by, the United States Government, its agencies or
instrumentalities; U.S. dollar-denominated certificates of deposit and bankers'
acceptances; interest-bearing time deposits; domestic or foreign commercial
paper of prime quality and participation interests in loans of equivalent
quality extended by banks to such companies; and repurchase agreements that are
collateralized in full each day by U.S. Government securities.
Annual Review
During the fiscal year ended November 30, 1999, the daily dividends of the
Primary Portfolio averaged 4.32% on an annual basis or 4.41% compounded monthly.
At fiscal year-end, the Portfolio had a seven-day compounded yield of 4.91%, up
from 4.55% at the beginning of the year. The average maturity of the Portfolio
during the year ranged from a low of 47 days to a high of 74 days and on
November 30, 1999, it was 48 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 4.09% on an annual basis or
4.17% compounded monthly for the fiscal year. On November 30, 1999, the
seven-day compounded yield of the Portfolio was 4.60%, up from 4.21% at November
30, 1998. The average maturity of the Portfolio during the year ranged from 37
days to 66 days. On November 30, 1999, it was 52 days.
General Municipal Portfolio
Objective
Seeks safety of principal, liquidity and maximum current income that is exempt
from Federal income taxes, from investments in a diversified portfolio of
high-grade municipal money market securities. Types of investments include
municipal notes, short-term municipal bonds, short-term discount notes and
participation interests in any of the foregoing.
Annual Review
Daily dividends of the General Municipal Portfolio averaged 2.26% on an annual
basis and 2.29% compounded monthly during the fiscal year ended November 30,
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 3.79%. The seven-day compounded yield on
November 30, 1999 was 2.81% compared with the beginning of the fiscal year when
it was 2.43%. Average maturity for the Portfolio ranged from 35 days to 80 days
and on November 30, 1999, it was 60 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, 1999, the daily dividend averaged 2.04% on an
annual basis and 2.06% 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 3.76%. During the twelve months ended November 30, 1999,
the seven-day compounded yield increased from 2.07% to 2.48%. The average
maturity of the securities in the Portfolio ranged from 27 days to 69 days and
was 53 days on November 30, 1999.
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
During the year ended November 30, 1999, the daily dividends of the Portfolio
averaged 2.14% on an annual basis and 2.16% compounded monthly. This was
equivalent to an effective taxable yield of 3.97% 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 3.8276%, respectively. The seven-day compounded
yield increased from 2.18% to 2.69% in the twelve months ended November 30,
1999. The average maturity of the Portfolio ranged between 27 days to 64 days.
On November 30, 1999, it stood at 46 days.
3
<PAGE>
November 30, 1999
- --------------------------------------------------------------------------------
SCHEDULES OF INVESTMENTS
- --------------------------------------------------------------------------------
- -----------------
PRIMARY PORTFOLIO
- -----------------
- --------------------------------------------------------------------------------
Principal
Amount
(000) Value
- --------------------------------------------------------------------------------
U.S. Government Agencies--5.9%
$38,000 Federal Home Loan Bank,
5.00%, 2/11/00 ....................................... $ 38,000,000
29,713 Federal Home Loan Mortgage
Corporation, 5.45%, 12/10/99.......................... 29,672,516
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--$145,672,516).................................. 145,672,516
------------
Bank Notes--1.6%
40,000 Wachovia Bank, NC,
4.99%-5.38%, 12/28/99-2/7/00
(amortized cost--$39,695,417) .................................. 39,695,417
------------
Certificates of Deposit--15.8%
95,000 Bank of Nova Scotia,
5.40%-6.06%, 12/6/99-1/24/00.......................... 95,000,000
60,000 Canadian Imperial Bank of
Commerce, 5.39%-5.40%,
12/20/99-12/27/99..................................... 60,000,000
85,000 National Westminister Bank plc,
5.29%-5.37%, 12/13/99-12/27/99........................ 85,000,000
95,000 Rabobank Nederland NV,
4.92%-5.36%, 12/14/99-2/7/00.......................... 95,000,767
55,000 Societe Generale 5.45%-6.00%,
12/29/99-3/1/00 ...................................... 55,000,000
------------
Total Certificates of Deposit
(amortized cost--$390,000,767).................................. 390,000,767
------------
Commercial Paper--71.5%
50,000 Abbey National North America,
5.77%, 2/7/00......................................... 49,455,056
30,000 ABN-Amro North America Finance Inc.,
5.41%, 12/20/99....................................... 30,000,000
52,415 American Express Credit Corp.,
5.23%-5.98%, 12/16/99-1/24/00......................... 52,062,849
50,000 BankAmerica Corp., 5.80%-5.98%,
1/5/00-2/3/00......................................... 49,618,211
74,700 British Columbia (Province of),
5.64%-5.70%, 2/22/00-5/15/00.......................... 73,266,326
------------
50,000 Canadian Wheat Board
5.67%, 2/4/00......................................... 49,488,125
83,050 Daimler-Chrysler North America
Holding Corp., 5.73%-5.92%,
2/14/00-2/28/00....................................... 81,932,598
10,000 Deere (John) Capital Corp.,
5.29%, 12/13/99....................................... 9,982,367
35,000 Diageo Capital plc,
5.87%, 1/18/00........................................ 34,726,067
60,000 Dover Corp., 5.32%-5.53%,
12/9/99-12/16/99...................................... 59,895,408
25,000 Exxon Asset Management Co.,
5.80%, 1/27/00 ....................................... 24,770,417
67,000 Ford Motor Credit Co.,
5.24%-5.83%, 12/15/99-2/2/00.......................... 66,548,547
32,000 General Electric Capital Corp.,
5.31%, 12/8/99 ....................................... 31,966,960
50,000 General Electric Capital Services
Inc., 5.15%, 12/6/99 ................................. 49,964,236
50,000 General Motors Acceptance Corp.,
5.75%, 2/14/00 ....................................... 49,401,042
32,200 Glaxo Wellcome plc,
5.85%, 3/2/00......................................... 31,718,610
50,000 Goldman Sachs Group L.P.,
5.98%, 2/3/00......................................... 49,468,444
95,000 Halifax plc, 5.20%-5.82%,
12/1/99-3/30/00....................................... 94,425,750
45,000 IBM Corp., 5.25%-5.79%,
12/15/99-1/14/00...................................... 44,782,250
86,000 Merrill Lynch & Co. Inc.,
5.30%-5.92%, 12/3/99-2/15/00.......................... 85,302,844
70,000 Morgan Stanley Dean Witter & Co.,
5.95%-6.04%, 1/6/00-1/13/00........................... 69,548,400
75,000 Norwest Financial Inc.,
5.45%-5.75%, 12/6/99-2/28/00.......................... 74,539,480
85,000 Oesterreichische Kontrollbank AG,
5.62%-5.92%, 1/18/00-4/25/00.......................... 83,852,766
50,000 Prudential Funding Corp.,
5.83%, 1/10/00 ....................................... 49,676,111
60,000 Rio Tinto America Inc.,
5.80%-5.82%, 2/16/00-2/28/00.......................... 59,196,383
60,000 Royal Bank of Canada,
5.30%-5.39%, 12/29/99-5/4/00.......................... 59,889,533
50,000 Svenska Handelsbanken Inc.,
5.33%, 12/21/99....................................... 49,851,944
50,000 Swedish Export Credit Corp.,
5.25%-5.28%, 1/18/00-1/31/00.......................... 49,601,333
80,000 Toronto-Dominion Holdings USA
Inc., 5.29%-5.32%, 12/2/99-12/14/99................... 79,935,310
30,000 TransAmerica Financial Corp.,
5.34%, 12/7/99 ....................................... 29,973,300
4
<PAGE>
- --------------------------------------------------------------------------------
Principal
Amount
(000) Value
- --------------------------------------------------------------------------------
Commercial Paper (cont'd.)
$90,000 UBS Finance Delaware Inc.,
5.69%, 12/1/99 ........... $ 90,000,000
45,000 Wachovia Bank 5.35%,
12/21/99-12/30/99 ........ 45,000,000
--------------
Total Commercial Paper
(amortized cost--$1,759,840,667) .... 1,759,840,667
--------------
Total Investments
(amortized cost--$2,335,209,367+) ... 94.8% 2,335,209,367
Other assets less liabilities ........... 5.2 128,092,791
----- --------------
Net Assets .............................. 100.0% $2,463,302,158
===== ==============
- --------------------
GOVERNMENT PORTFOLIO
- --------------------
U.S. Government Agencies--99.6%
Federal Home Loan Bank--19.1%
$2,000 5.00%, 2/11/00 ....................................... $ 2,000,000
1,500 5.18%, 12/23/99 ...................................... 1,495,252
1,386 5.40%, 12/22/99 ...................................... 1,381,634
2,000 5.47%, 2/9/00 ........................................ 1,978,728
3,500 5.53%, 2/4/00 ........................................ 3,465,053
1,500 5.53%, 3/8/00 ........................................ 1,477,419
3,350 5.57%, 12/1/99 ....................................... 3,350,000
1,000 5.61%, 4/26/00 ....................................... 977,093
--------------
Total Federal Home Loan Bank
(amortized cost--$16,125,179) ............................. 16,125,179
--------------
Federal Home Loan Mortgage Corporation--32.7%
1,000 5.04%, 12/8/99 ...................................... 999,020
129 5.10%, 12/10/99 ..................................... 128,836
5,170 5.14%, 12/20/99-12/30/99 ............................ 5,155,019
6,000 5.17%, 12/31/99 ..................................... 5,974,150
2,000 5.21%, 1/24/00 ...................................... 1,984,370
2,000 5.23%, 1/25/00 ...................................... 1,984,020
3,000 5.26%, 12/15/99 ..................................... 2,993,863
2,500 5.40%, 12/29/99 ..................................... 2,489,500
1,405 5.43%, 12/29/99 ..................................... 1,399,066
1,200 5.48%, 12/14/99 ..................................... 1,197,625
3,000 5.56%, 3/2/00 ....................................... 2,957,373
189 5.62%, 1/25/00 ...................................... 187,377
--------------
Total Federal Home Loan Mortgage Corporation
(amortized cost--$27,450,219) .............................. 27,450,219
--------------
Federal National Mortgage Association--45.4%
5,000 5.24%, 12/13/99 .................................... 4,991,267
160 5.26%, 12/7/99 ..................................... 159,860
7,883 5.28%, 12/2/99-12/17/99 ............................ 7,874,967
3,500 5.29%, 12/9/99 ..................................... 3,495,886
3,000 5.30%, 12/2/99 ..................................... 2,999,558
3,000 5.47%, 3/6/00 ...................................... 2,956,240
4,000 5.48%, 4/10/00-4/24/00 ............................. 3,915,973
2,735 5.52%, 5/11/00 ..................................... 2,667,062
2,000 5.53%, 2/17/00 ..................................... 1,976,037
1,500 5.59%, 1/20/00 ..................................... 1,488,354
1,700 5.60%, 1/20/00 ..................................... 1,686,778
4,000 5.64%, 5/18/00 ..................................... 3,894,093
--------------
Total Federal National Mortgage Association
(amortized cost--$38,106,075) ............................... 38,106,075
--------------
Student Loan Marketing Association--2.4%
2,000 5.05%, 1/19/00
(amortized cost--$2,000,000) ................................ 2,000,000
--------------
Total Investments
(amortized cost--$83,681,473+) ............... 99.6% 83,681,473
Other assets less liabilities ................... 0.4 341,570
----- --------------
Net Assets ...................................... 100.0% $84,023,043
===== ==============
- ---------------------------
GENERAL MUNICIPAL PORTFOLIO
- ---------------------------
Alabama--1.8%
$2,150 Phenix City Environ. Improv.
Rev., Mead Proj., Ser. A, VRDN*
3.80%, 6/1/28 ........................................... $2,150,000
--------------
Alaska--3.4%
1,105 Anchorage Water Rev
4.50%, 9/1/00 ........................................... 1,109,794
3,000 Valdez Marine Term. Rev.,
Arco Trans. Proj.,
3.60%, 12/1/99 .......................................... 3,000,000
--------------
4,109,794
--------------
5
<PAGE>
November 30, 1999
- --------------------------------------------------------------------------------
SCHEDULES OF INVESTMENTS (continued)
- --------------------------------------------------------------------------------
- -------------------------------------
GENERAL MUNICIPAL PORTFOLIO (cont'd.)
- -------------------------------------
- --------------------------------------------------------------------------------
Principal
Amount
(000) Value
- --------------------------------------------------------------------------------
Arizona--1.7%
$1,000 Arizona Edl. Ln. Mktg. Corp.,
ELR, Ser. A, VRDN*
(LC; Dresdner Bank AG),
4.00%, 12/1/20 .................................... $1,000,000
1,000 Maricopa Cnty PCR., VRDN*
3.75%, 5/1/29 ..................................... 1,000,000
---------
2,000,000
---------
Colorado--2.7%
3,300 Denver City & Cnty.,
Colorado Airport Sys.,
(LC; Bayerische Landesbank
Girozentrale),
3.70%, 2/7/00 ..................................... 3,300,000
---------
Delaware--3.4%
400 Delaware Cnty. IDA,
Parcel Services,VRDN*
3.60%, 12/1/15 .................................... 400,000
1,000 Delaware St. EDA Rev.,
Ser. A, VRDN*
3.85%, 10/1/17 .................................... 1,000,000
1,300 Delaware St. EDAR,
Delmarva Light & Power Co. ........................
Proj., VRDN*
3.85%, 10/1/17 .................................... 1,300,000
1,400 Delaware St. EDAR,
Gas Power Proj., VRDN*
3.85%, 10/1/29 .................................... 1,400,000
---------
4,100,000
---------
Florida--1.7%
1,000 Jacksonville EAR Ser. 16,
4.00%, 10/1/00 .................................... 1,002,425
1,000 Sarasota Water & Sewer Util.
Rev., Ser. H-1, VRDN*
3.75%, 10/1/00 .................................... 1,016,178
---------
2,018,603
---------
Georgia--3.2%
1,780 Gwinnett Cnty Sch Dist.,
Ser. A, 5.10%, 2/1/00 ............................. 1,785,490
2,000 Georgia Muni. Elec. Auth.,
Ser. A, (LC; Morgan Guaranty Trust),
3.60%, 12/2/99 .................................... 2,000,000
---------
3,785,490
---------
Hawaii--0.8%
1,000 Hawaii St. Secondary Mkt. Svcs.
Corp., SLR, Ser. III, VRDN*
(LC; National Westminster
Bank plc), 3.95%, 9/1/10 ........................... 1,000,000
---------
Iowa--1.7%
2,000 Iowa St. Sch. Cash Antic.
Prog., 4.00%, 6/23/00 .............................. 2,008,346
---------
Indiana--1.7%
1,000 Indiana Univ.,
4.35%, 8/1/00 ...................................... 1,003,218
1,000 Indianapolis PIB,
Ser. A,
4.00%, 1/10/00 ..................................... 1,000,806
---------
2,004,024
---------
Kentucky--7.3%
200 Boone Cnty. PCR,
Cincinnati Elec. & Gas Co. Proj.,
Ser. A, VRDN*
(LC; Union Bank of Switzerland),
3.80%, 8/1/13 ...................................... 200,000
5,000 Jefferson Cnty,
1996 Ser. A
3.65%, 3/6/00 ...................................... 5,000,000
2,000 Kentucky HEL, Student Loan Corp.,
SLR, Ser. E, VRDN*
(Insd.; AMBAC),
3.90%, 12/1/11 ..................................... 2,000,000
1,600 Louisville & Jefferson Cnty,
Worldwide Ser. A, VRDN*
3.75%, 1/1/29 ...................................... 1,600,000
---------
8,800,000
---------
6
<PAGE>
- --------------------------------------------------------------------------------
Principal
Amount
(000) Value
- --------------------------------------------------------------------------------
Maryland--2.5%
$3,000 Anne Arundel Cnty. EDR,
Ser. B,
3.90%, 1/24/00 .................................... $3,000,000
----------
Massachusetts--0.8%
1,000 Brookline GO,
4.90%, 9/1/00 ..................................... 1,009,282
----------
Michigan--1.2%
1,400 Michigan St. Strategic,
Dow Chem. Co. Proj., VRDN*
3.65%, 2/1/09 ..................................... 1,400,000
----------
Missouri--1.0%
1,190 Missouri St. GO,
Fourth State, Ser. A,
6.25%, 6/1/00 ..................................... 1,205,191
----------
Nebraska--3.1%
Nebraska HEL Prog.,
Student Loan, (LC; SLMA),
2,100 Ser. A, VRDN*
4.05%, 12/1/16 .................................... 2,100,000
1,600 Ser. C, VRDN*
4.05%, 8/1/18 ..................................... 1,600,000
----------
3,700,000
----------
New Jersey--1.5%
1,750 Somerset Cnty.,
5.10%, 9/15/00 .................................... 1,768,803
----------
New York--8.2%
2,000 New York City GO,
Ser. 5B, (Insd.; MBIA),
3.50%, 12/6/99 .................................... 2,000,000
1,300 New York St. JDA,
Ser. A1-A13, VRDN*
3.80%, 7/1/02 ..................................... 1,300,000
2,295 New York St. JDA,
Ser. A1-A42, VRDN*
3.80%, 3/1/05 ..................................... 2,295,000
1,500 New York St. JDA,
Ser. B1-B21, VRDN*
3.80%, 3/1/02-3/5/02 .............................. 1,500,000
2,800 Triborough Bridge & Tunnel
Auth. Rev., Ser. A,
5.00%, 1/1/00 ..................................... 2,804,800
----------
9,899,800
----------
Oregon--4.2%
5,000 Port of Portland Special
Oblig. Rev.,
Horizon Air Industries Proj. ......................
VRDN* (LC; Bank of Montreal),
3.80%, 6/15/27 .................................... 5,000,000
----------
Pennsylvania--1.7%
2,000 Pennsylvania St. HEA, SLR,
Ser. A, VRDN*
(LC; SLMA),
3.95%, 12/1/24 .................................... 2,000,000
----------
South Carolina--3.8%
500 Berkeley Cnty. Exempt, IFR
Amoco Chem. Co. Proj., VRDN*
3.85%, 4/1/28 ..................................... 500,000
4,070 South Carolina Jobs EDA,
St. Francis Hospital Proj., VRDN*
3.85%, 7/1/22 ..................................... 4,070,000
----------
4,570,000
----------
Tennessee--1.9%
2,300 Hamilton Cnty. IDR,
Seaboard Feeds Inc. Proj., VRDN*
(LC; Bank of New York),
4.00%, 12/1/17 .................................... 2,300,000
----------
7
<PAGE>
November 30, 1999
- --------------------------------------------------------------------------------
SCHEDULES OF INVESTMENTS (continued)
- --------------------------------------------------------------------------------
- -------------------------------------
GENERAL MUNICIPAL PORTFOLIO (cont'd.)
- -------------------------------------
- --------------------------------------------------------------------------------
Principal
Amount
(000) Value
- --------------------------------------------------------------------------------
Texas--22.8%
$2,000 Austin Util. Sys.,
3.85%, 2/16/00 ................................... $ 2,000,000
1,000 Brazos HEA, Ser. B-1,
VRDN* (CS; SLMA),
3.85%, 6/1/23 .................................... 1,000,000
5,000 City of Fort Worth GO,
3.45%, 1/18/00 ................................... 5,000,000
1,500 Fort Worth Water & Sewer,
4.00%, 2/15/00 ................................... 1,501,718
1,800 Dallas Area Rapid Transit,
STR, Ser. B
(LC; Westdeutsche Landesbank),
3.20%, 1/18/00 ................................... 1,800,000
2,000 El Paso Water & Sewer,
Ser. A, (LC; Bank of America),
3.55%, 2/2/00 .................................... 2,000,000
3,400 Grapevine IDR,
Multiple Mode, American Airlines
Proj., Ser. B1, VRDN*
(LC; Morgan Guaranty Trust),
3.70%, 12/1/24 ................................... 3,400,000
1,000 Gulf Coast WDA, Env.
Facs. Rev., Amoco Oil Co. Proj.,
VRDN* 3.85%, 1/1/26 .............................. 1,000,000
800 Gulf Coast WDA, PCR,
Amoco Oil Co. Proj., VRDN*
3.60%, 10/1/17 ................................... 800,000
1,800 Harris Cnty., PCR, VRDN*
3.70%, 8/15/27 ................................... 1,800,000
500 Port Arthur Navigation Dist.,
Texaco Inc. Proj., VRDN*
3.75%, 10/1/24 ................................... 500,000
480 Texas HEA, Ser. B, VRDN*
(Insd.; FGIC),
3.85%, 12/1/25 ................................... 480,000
5,000 Texas St., GO, Ser. A,
4.50%, 12/31/00 .................................. 5,028,789
1,000 Univ. of Texas,
Sys. Rev., Ser. A,
3.20%, 2/1/00 .................................... 1,000,000
----------
27,310,507
----------
Utah--1.7%
2,000 Utah St. Brd. Regents SLR,
Ser. L, VRDN*
(Insd.; AMBAC),
3.95%, 11/4/25 .................................... 2,000,000
------------
Washington--5.8%
3,000 King Cnty., Sewer Rev., Ser.A,
3.65%, 12/6/99 .................................... 3,000,000
2,500 Port Sea. GO,
3.85%, 2/9/00 ..................................... 2,500,000
1,500 Seattle City,
Muni. Power & Light Rev.,
3.40%, 2/28/00 .................................... 1,500,000
------------
7,000,000
------------
Wisconsin--2.7%
1,500 Kenosha Univ. TRAN,
School Dist. No. 001,
4.15%, 10/6/00 .................................... 1,504,893
1,763 Wisconsin St. GO,
3.80%, 2/14/00 .................................... 1,763,000
------------
3,267,893
------------
Wyoming--3.0%
700 Kemmerer PCR., VRDN*
3.60%, 11/1/14 .................................... 700,000
1,200 Lincoln Cnty. PCR, VRDN*
3.60%, 11/1/14 .................................... 1,200,000
1,700 Sweetwater Cnty. PCR, VRDN*
Idaho Power Co. Proj.,
3.65%, 7/15/26 .................................... 1,700,000
------------
3,600,000
------------
Total Investments
(amortized cost--$114,307,733+)......... 95.3% 114,307,733
Other assets less liabilities .............. 4.7 5,694,723
------ ------------
Net Assets ................................. 100.0% $120,002,456
====== ============
8
<PAGE>
- ------------------------------
CALIFORNIA MUNICIPAL PORTFOLIO
- ------------------------------
- --------------------------------------------------------------------------------
Principal
Amount
(000) Value
- --------------------------------------------------------------------------------
California Municipal Bonds & Notes--89.1%
$ 385 Alameda Cnty.,
Var. Cap. Impts. Fing., VRDN*
3.65%, 7/1/23 ...................... $ 385,000
1,700 Anaheim Ctfs. Partn.,
1993 Ref. Projs., VRDN*
(Insd.; AMBAC),
3.50%, 8/1/19....................... 1,700,000
1,800 California HFFAR,
Var. Insd., Hospital Adventist,
Ser. B, (Insd.; MBIA), VRDN*
3.55%, 9/1/28....................... 1,800,000
800 Var. Insd. Sutter Chs.,
Ser. B, (Insd.; MBIA), VRDN*
3.40%, 7/1/12....................... 800,000
4,800 California PCFA, PCR,
Pacific Elec. & Gas,
Ser. C, VRDN*
(LC; Bank of America),
3.25%-3.95%, 2/28/08-11/1/26........ 4,800,000
1,308 California SWDR,
Ser. 1, 3.30%, 12/7/99.............. 1,308,000
2,400 California St. EDFAR,
(LC; Bank of America), VRDN*
3.70%, 4/1/08....................... 2,400,000
3,000 California St. GO,
3.20%-3.25%, 12/1/99-12/2/99........ 3,000,000
2,400 California SCD Auth. Rev.
Ctfs. Partn., VRDN* (Insd.; MBIA),
3.55%, 4/1/28....................... 2,400,000
1,300 John Muir/Mt. Diablo Health Proj.,
VRDN* (Insd.; AMBAC),
3.55%, 8/15/27 ..................... 1,300,000
2,000 California SCD Corp. Rev., ID,
4.00%, 6/30/00 ..................... 2,009,200
600 Chula Vista IDR,
San Diego Elec. & Gas Co.,
Ser. A, VRDN*
3.50%, 3/1/23....................... 600,000
700 Chula Vista IDR,
San Diego Elec. & Gas Co.,
Ser. B, VRDN*
4.00%, 12/1/21 ..................... 700,000
3,000 East Bay Muni Util. Dist.,
3.10%, 12/6/99 ..................... 3,000,000
2,000 Kern Cnty. TRAN,
4.00%, 6/30/00 ..................... 2,009,537
2,000 Los Angeles Cnty. TRAN, Ser. A,
4.00%, 6/30/99 ..................... 2,010,106
3,000 Los Angeles Wastewater Sys.,
3.20%-3.25%, 12/2/99............ 3,000,000
2,000 Los Angeles Cnty. Cap. Assets,
3.40%, 12/6/99 ..................... 2,000,000
2,000 Metropolitan Water,
Dist. of So. Calif., Ser. B,
3.40%, 12/7/99 ..................... 2,000,000
1,400 Orange Cnty. Impt. Act 1915,
1915 Adj., VRDN*
(Insd.; FGIC),
3.55%, 9/2/18....................... 1,400,000
1,200 Orange Cnty. WD Ctfs. Partn.,
Ser. B, VRDN*
(LC; National Westminster Bank plc),
3.55%, 8/15/15 ..................... 1,200,000
2,000 San Bernardino Cnty. TRAN,
3.75%, 9/29/00 ..................... 2,005,911
3,000 San Diego Cty WD,
Ser. 1
3.40%, 12/9/99 ..................... 3,000,000
2,800 San Diego Regional Transportation,
Ser. A,
3.40%, 12/8/99 ..................... 2,800,000
1,500 San Diego Unified Port. Dist, Ser. B,
3.50%, 1/24/00 ..................... 1,500,000
1,100 San Diego Unified School District,
4.25%, 9/29/00 ..................... 1,107,616
3,000 San Francisco Bay,
(LC; Union Bank of Switzerland),
3.20%, 2/7/00....................... 3,000,000
1,000 Santa Barbara Cnty.,
4.25%, 9/29/00 ..................... 1,006,917
872 Santa Clara Cnty. El Camino
Dist. Hosp. FAR,
Lease--VY Med. Ctr. Proj.,
Ser. A, VRDN*
(LC; Bayerische Vereinsbank AG),
3.65%, 8/1/15....................... 872,000
1,000 So. Calif. Edison Co.,
3.60%, 2/2/00....................... 1,000,000
9
<PAGE>
November 30, 1999
- --------------------------------------------------------------------------------
SCHEDULES OF INVESTMENTS (continued)
- --------------------------------------------------------------------------------
- ----------------------------------------
CALIFORNIA MUNICIPAL PORTFOLIO (cont'd.)
- ----------------------------------------
- --------------------------------------------------------------------------------
Principal
Amount
(000) Value
- --------------------------------------------------------------------------------
California Municipal Bonds & Notes (cont'd.)
$1,100 So. Calif. Pub. Power
Auth. Rev., Transmission Proj.,
VRDN* (LC; Barclays Bank plc),
3.50%, 7/1/19....................... $ 1,100,000
2,000 University of California,
Board of Regents, Ser. A,
3.35%, 12/8/99 ..................... 2,000,000
-------------
Total California Municipal Bonds & Notes
(amortized cost--$59,214,287)................... 59,214,287
-------------
Tax-Exempt Commercial Paper--4.3%
Puerto Rico--4.3%
2,839 Puerto Rico Gov't. Dev. Bank,
3.30%, 2/7/00
(amortized cost--$2,839,000).................... 2,839,000
-------------
Total Investments
(amortized cost--$62,053,287+)................ 93.4% 62,053,287
Other assets less liabilities .................... 6.6 4,415,691
----- -------------
Net Assets ....................................... 100.0% $66,468,978
===== =============
- -------------------------------
NEW YORK MUNICIPAL PORTFOLIO
- -------------------------------
New York Municipal Bonds & Notes--90.4%
$1,000 Broome Cnty., BAN,
3.50%, 4/5/00....................... $1,001,536
1,800 City of New York GO,
Sub. Ser. H3,
3.70%, 2/14/00 ..................... 1,800,000
2,100 Long Island Power Auth.,
Elec. Sys. Rev.,
Ser. 3, (LC; Westdeutsche
Landesbank),
3.55%, 2/7/00 ...................... 2,100,000
3,000 MTA Transit Fac. TRAN,
Special Obligation,
Ser. CP1-Sub. Ser. B,
(LC; ABN-Amro Bank NV),
3.50%-3.60%, 1/8/00-2/7/00 ......... 3,000,000
1,500 Municipal Assistance Corp.,
5.50%, 1/7/00 ...................... 1,517,861
1,100 Nassau Cnty. IDA,
Civic Fac. Rev.,
Van Winthrop Univ. Hospital, VRDN*
3.75%, 3/1/28....................... 1,100,000
1,000 New York City,
Ser. H, VRDN*
7.875%, 8/1/00 ..................... 1,027,789
2,500 New York City,
Water Fin. Ser. 5B
3.50%, 12/9/99 ..................... 2,500,000
New York City Trust CRR,
1,700 Museum of Broadcasting Proj.,
VRDN* (LC; Kredietbank NV),
3.70%, 5/1/14....................... 1,700,000
2,900 Museum of Modern Art Proj.,
Ser. 1, (Insd.; AMBAC),
3.70%-5.00%, 1/1/00-12/1/15 ........ 2,901,713
1,400 New York St. DAR,
Memorial Sloan-Kettering Cancer
Center Proj., VRDN*
(LC; Chase Manhattan Bank),
3.70%, 7/1/19....................... 1,400,000
1,200 Ser. 1996, (LC; Morgan Guaranty
Trust),
3.70%, 7/1/19....................... 1,200,000
2,075 St. Univ. Edl.--Ser. B
7.25%, 5/15/00 ..................... 2,075,375
10
<PAGE>
- --------------------------------------------------------------------------------
Principal
Amount
(000) Value
- --------------------------------------------------------------------------------
New York Municipal Bonds & Notes (cont'd.)
$1,600 Oxford Univ. Press Inc.,
VRDN* (LC; Landesbank Hessen),
3.85%, 7/1/25....................... $1,600,000
2,000 New York St. ERDA, Gas Fac. Rev.,
Brooklyn Union Gas Proj.,
Ser. A2, VRDN* (Insd.; MBIA),
3.80%, 12/1/20 ..................... 2,000,000
New York St. ERDA, PCR,
1,700 Niagara Mohawk Power Co. Proj.,
VRDN* (LC; Morgan Guaranty Trust),
4.00%, 7/1/15....................... 1,700,000
1,300 Rochester Elec. & Gas Co. Proj.,
Ser. A, VRDN*
(Insd.; MBIA),
3.85%, 8/1/23....................... 1,300,000
1,400 New York St., HFFAR
Normandie Ct. I Proj, VRDN*
3.70%, 5/15/15 ..................... 1,400,000
1,000 New York St. GO, Ser. U,
3.50%, 1/25/00 ..................... 1,000,000
1,200 New York St. JDA, VRDN*
New York St. GO, Ser. U,
3.60%, 2/10/00 ..................... 1,200,000
2,240 New York St. JDA, VRDN*
Ser. A1-A13, Ser. B1-B8,
3.80%, 3/1/02....................... 2,240,000
2,050 New York St. LGAC,
Ser. E, VRDN*
(LC; Canadian Imperial Bank of
Commerce),
3.70%, 4/1/25....................... 2,050,000
700 New York St. MCF,
Ser. A, VRDN*
3.80%, 11/1/08 ..................... 700,000
2,500 New York St. PAR,
(LC; Commerzbank),
3.50%, 12/6/99 ..................... 2,500,000
2,500 New York St. Env. GO,
Ser. 1997A,
3.60%, 1/19/00 ..................... 2,500,000
1,900 Port Auth. of New York &
New Jersey, VRDN*
3.65%, 8/1/24....................... 1,900,000
1,000 St. Lawrence Cnty. IDA, EIR,
Reynolds Metals Co. Proj., VRDN*
(LC; Royal Bank of Canada),
3.85%, 5/1/25....................... 1,000,000
2,004 Smithtown Central Sch. Dist.
3.80%, 6/26/00 ..................... 2,004,380
1,100 Syracuse IDA,
Syracuse Univ. Proj.,
3.75%, 3/1/23....................... 1,100,000
450 Wallkill IDA, PCR,
Reynolds Metals Co. Proj.,
VRDN* (LC; Dresdner Bank AG),
3.90%, 5/1/25....................... 450,000
-----------
Total New York Municipal Bonds & Notes
(amortized cost--$49,968,654)................... 49,968,654
-----------
Tax-Exempt Commercial Paper--1.8%
Puerto Rico--1.8%
1,000 Puerto Rico Gov't. Dev. Bank,
3.50%, 4/5/00
(amortized cost $1,000,000)..................... 1,000,000
-----------
Total Investments
(amortized cost--$50,968,654+).................. 92.2% 50,968,654
Other assets less liabilities ...................... 7.8 4,311,958
----- -----------
Net Assets ......................................... 100.0% $55,280,612
===== ===========
- --------------------------------------------------------------------------------
+ Federal income tax basis is the same as 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.
11
<PAGE>
November 30, 1999
- --------------------------------------------------------------------------------
SCHEDULES OF INVESTMENTS (concluded)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Abbreviations:
<S> <C> <C> <C>
AMBAC American Mortgage Bond Assurance Corporation IFR Industrial Facilities Revenue
BAN Bond Anticipation Notes JDA Job Development Authority
CRR Cultural Resources Revenue LC Letter of Credit
CS Credit Support LGAC Local Government Assistance Corp.
DAR Dormitory Authority Revenue MBIA Municipal Bond Investors Assurance
EAR Electric Authority Revenue MCF Medical Care Facility
EDA Economic Development Authority MTA Metropolitan Transportation Authority
EDFAR Economic Development Financing Authority PAR Power Authority Revenue
Revenue PCFA Pollution Control Financing Authority
EDR Economic Development Revenue PCR Pollution Control Revenue
EIR Environment Improvement Revenue PIB Public Improvement Board
ELR Educational Loan Revenue SCD Statewide Communities Development
ERDA Energy Research & Development Authority SLMA Student Loan Marketing Association
FAR Finance Authority Revenue SLR Student Loan Revenue
FGIC Financial Guaranty Insurance Corporation STR Sales Tax Revenue
GO General Obligation SWDR Solid Waste Disposal Revenue
HEA Higher Education Authority TAN Tax Anticipation Notes
HEL Higher Education Loan TRAN Tax Revenue Anticipation Notes
HFFAR Health Facilities Financing Authority Revenue WD Water District
IDA Industrial Development Agency WDA Waste Disposal Authority
IDR Industrial Development Revenue
</TABLE>
See accompanying notes to financial statements.
12
<PAGE>
This page was intentionally left blank.
13
<PAGE>
November 30, 1999
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
General California New York
Primary Government Municipal Municipal Municipal
Portfolio Portfolio Portfolio Portfolio Portfolio
-------------- -------------- -------------- -------------- --------------
Assets:
Investments, at value
(amortized cost --
$2,335,209,367, $83,681,473,
$114,307,733, $62,053,287 and
<S> <C> <C> <C> <C> <C>
$50,968,654, respectively) ............... $2,335,209,367 $ 83,681,473 $ 114,307,733 $ 62,053,287 $ 50,968,654
Cash ...................................... 232,241 170,812 23,729 148,099 228,727
Receivable for investments sold/called .... -- -- 2,880,000 1,200,000 2,800,000
Receivable for capital stock sold ......... 120,413,663 168,996 2,204,488 2,791,710 1,058,658
Interest receivable ....................... 12,363,279 167,811 802,890 363,477 309,746
Prepaid expenses and other assets ......... 46,034 10,151 8,491 737 775
-------------- -------------- -------------- -------------- --------------
Total Assets .............................. 2,468,264,584 84,199,243 120,227,331 66,557,310 55,366,560
-------------- -------------- -------------- -------------- --------------
Liabilities:
Payable for capital stock redeemed ........ 4,142 -- 51,933 -- --
Investment advisory fee payable ........... 52,449 2,272 3,169 1,739 1,474
Distribution fee payable .................. 32,096 1,139 1,609 870 727
Dividend payable .......................... 3,742,468 123,852 107,631 52,070 46,514
Other payables and accrued
expenses ................................. 1,131,271 48,937 60,533 33,653 37,233
-------------- -------------- -------------- -------------- --------------
Total Liabilities ......................... 4,962,426 176,200 224,875 88,332 85,948
-------------- -------------- -------------- -------------- --------------
Net Assets ................................ $2,463,302,158 $ 84,023,043 $ 120,002,456 $ 66,468,978 $ 55,280,612
============== ============== ============== ============== ==============
Composition of Net Assets:
Par value ($.0001 per share,
10 billion shares
authorized for each portfolio) ........... $ 246,334 $ 8,404 $ 12,009 $ 6,650 $ 5,531
Paid-in-capital in excess of par .......... 2,463,053,113 84,013,895 120,035,432 66,493,045 55,299,676
Accumulated net realized gain
(loss) on investments .................... 2,711 744 (44,985) (30,717) (24,595)
-------------- -------------- -------------- -------------- --------------
Net Assets ................................ $2,463,302,158 $ 84,023,043 $ 120,002,456 $ 66,468,978 $ 55,280,612
============== ============== ============== ============== ==============
Shares outstanding ........................ 2,463,338,617 84,044,491 120,089,945 66,500,420 55,305,207
-------------- -------------- -------------- -------------- --------------
Net asset value per share ................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
============== ============== ============== ============== ==============
</TABLE>
See accompanying notes to financial statements.
14
<PAGE>
Year ended November 30, 1999
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
General California New York
Primary Government Municipal Municipal Municipal
Portfolio Portfolio Portfolio Portfolio Portfolio
------------- ------------- ------------- ------------- -------------
Investment Income:
<S> <C> <C> <C> <C> <C>
Interest ..................................... $ 124,298,680 $ 4,842,820 $ 4,274,943 $ 1,975,153 $ 2,122,890
------------- ------------- ------------- ------------- -------------
Operating Expenses:
Investment advisory fees ..................... 9,867,390 478,975 653,803 335,555 344,235
Distribution fees ............................ 6,042,119 239,980 335,446 167,778 172,391
Transfer agent fees .......................... 1,733,273 45,536 65,352 20,154 51,965
Administrative services fees ................. 1,198,105 46,245 66,125 33,460 32,475
Shareholder servicing fees ................... 372,204 15,762 22,295 9,984 13,607
Directors' fees and expenses ................. 196,145 8,267 11,595 5,379 6,055
Reports to shareholders ...................... 159,870 3,426 5,160 1,709 1,719
Custodian fees ............................... 157,657 35,118 40,181 14,874 18,427
Audit and tax service fees ................... 45,410 22,659 21,186 18,618 19,550
Registration fees ............................ 22,706 13,703 15,449 1,031 1,490
Legal fees ................................... 11,543 927 1,335 320 379
Miscellaneous ................................ 100,307 7,222 9,731 5,878 5,996
------------- ------------- ------------- ------------- -------------
Total operating expenses ................... 19,906,729 917,820 1,247,658 614,740 668,289
Less: expense offset ....................... (4,182) (1,262) (2,002) (2,477) (3,199)
------------- ------------- ------------- ------------- -------------
Net operating expenses ................... 19,902,547 916,558 1,245,656 612,263 665,090
------------- ------------- ------------- ------------- -------------
Net investment income ......................... 104,396,133 3,926,262 3,029,287 1,362,890 1,457,800
Net realized gain on investments .............. 3,367 484 6,476 5 --
------------- ------------- ------------- ------------- -------------
Net increase in net assets
resulting from operations .................... $ 104,399,500 $ 3,926,746 $ 3,035,763 $ 1,362,895 $ 1,457,800
============= ============= ============= ============= =============
</TABLE>
See accompanying notes to financial statements.
15
<PAGE>
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Primary Portfolio Government Portfolio
------------------------------------ ------------------------------------
Year ended November 30, Year ended November 30,
------------------------------------ ------------------------------------
1999 1998 1999 1998
---------------- ---------------- ---------------- ----------------
Operations:
<S> <C> <C> <C> <C>
Net investment income ............................. $ 104,396,133 $ 107,471,188 $ 3,926,262 $ 4,285,012
Net realized gain (loss)
on investments .................................. 3,367 449 484 523
---------------- ---------------- ---------------- ----------------
Net increase in net assets
resulting from operations ....................... 104,399,500 107,471,637 3,926,746 4,285,535
---------------- ---------------- ---------------- ----------------
Dividends to Shareholders from:
Net investment income ............................. (104,396,133) (107,471,188) (3,926,262) (4,285,012)
Capital Stock Transactions
(at $1.00 per share):
Net proceeds from sales ........................... 16,680,730,656 14,416,847,565 389,179,482 642,903,095
Reinvestment of dividends ......................... 103,977,710 107,839,942 3,933,944 4,257,414
Cost of shares redeemed ........................... (16,893,848,229) (14,117,821,757) (421,236,776) (634,993,342)
---------------- ---------------- ---------------- ----------------
Net increase (decrease) in
net assets from capital stock
transactions ................................... (109,139,863) 405,865,750 (28,123,350) 12,167,167
---------------- ---------------- ---------------- ----------------
Total increase (decrease) in
net assets ...................................... (109,136,496) 405,866,199 (28,122,866) 12,167,690
---------------- ---------------- ---------------- ----------------
Net Assets:
Beginning of year ................................. 2,572,438,654 2,166,572,455 112,145,909 99,978,219
---------------- ---------------- ---------------- ----------------
End of year ....................................... $ 2,463,302,158 $ 2,572,438,654 $ 84,023,043 $ 112,145,909
================ ================ ================ ================
</TABLE>
See accompanying notes to financial statements.
16
<PAGE>
<TABLE>
<CAPTION>
General Municipal Portfolio California Municipal Portfolio New York Municipal Portfolio
------------------------------------ ------------------------------------ ------------------------------------
Year ended November 30, Year ended November 30, Year ended November 30,
------------------------------------ ------------------------------------ ------------------------------------
1999 1998 1999 1998 1999 1998
--------------- --------------- --------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C> <C>
$ 3,029,287 $ 4,240,610 $ 1,362,890 $ 1,515,431 $ 1,457,800 $ 1,876,324
6,476 (709) 5 -- -- --
--------------- --------------- --------------- --------------- --------------- ---------------
3,035,763 4,239,901 1,362,895 1,515,431 1,457,800 1,876,324
--------------- --------------- --------------- --------------- --------------- ---------------
(3,029,287) (4,240,610) (1,362,890) (1,515,431) (1,457,800) (1,876,324)
--------------- --------------- --------------- --------------- --------------- ---------------
861,154,301 1,032,098,542 416,303,954 429,969,028 403,092,986 500,835,718
3,040,600 4,223,116 1,355,458 1,513,776 1,433,608 1,879,639
(916,014,947) (1,001,476,568) (421,583,010) (416,803,566) (433,394,287) (491,805,768)
--------------- --------------- --------------- --------------- --------------- ---------------
(51,820,046) 34,845,090 (3,923,598) 14,679,238 (28,867,693) 10,909,589
--------------- --------------- --------------- --------------- --------------- ---------------
(51,813,570) 34,844,381 (3,923,593) 14,679,238 (28,867,693) 10,909,589
171,816,026 136,971,645 70,392,571 55,713,333 84,148,305 73,238,716
--------------- --------------- --------------- --------------- --------------- ---------------
$ 120,002,456 $ 171,816,026 $ 66,468,978 $ 70,392,571 $ 55,280,612 $ 84,148,305
=============== =============== =============== =============== =============== ===============
</TABLE>
17
<PAGE>
November 30, 1999
- --------------------------------------------------------------------------------
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 "Investment Adviser") and OCC Distributors (the
"Distributor"), both subsidiaries of Oppenheimer Capital, an indirect
wholly-owned subsidiary of PIMCO Advisors L.P., serve as each Portfolio's
investment 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 continue 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.
During the year ended November 30, 1999, California reclassified $725 from
accumulated net realized loss on investments to paid-in-capital in excess of par
relating to the expiration of capital loss carryforwards from prior periods.
(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 Allocation
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) Expense Offset
The Fund benefits from an expense offset arrangement with its custodian bank
whereby uninvested cash balances earn credits which reduce monthly custodian
expenses. Had these cash balances been invested in income producing securities,
they would have generated income for the Fund.
(h) Directors' Retirement Plan
The Fund's Directors have adopted a Retirement Plan (the "Plan") effective
December 1, 1998. The Plan 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 year ended November 30, 1999,
the Primary, Government, General, California and New York portfolios accrued
$84,589, $3,573, $5,000, $2,319 and $2,614, respectively in connection with the
Plan.
18
<PAGE>
2. Investment Advisory and Distribution Fees
(a) Under the Investment Advisory Agreement, each Portfolio pays the Investment
Adviser a monthly investment advisory fee at the annual rate of 0.50% on the
first $100 million of average daily net assets, 0.45% on the next $200 million
of average daily net assets, and 0.40% on average daily net assets in excess of
$300 million. The Investment Adviser is contractually obligated to waive its
fees and/or reimburse operating expenses to the extent total operating expenses
of a Portfolio exceeds 1.00% of its average daily net assets (net of any expense
offset) for any fiscal year.
(b) Under the Distribution Assistance Plan, each Portfolio pays the Investment
Adviser a monthly fee at an annual rate of 0.25% of its average daily net assets
and the Investment 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 Portfolios and (ii) otherwise promoting
the sale of shares of the Fund.
3. 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 Investment 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, 1999, major industry
concentrations were: Banking--38.7%, Finance--13.6%, Diversified--9.6%,
Brokerage--8.4% and Sovereign--8.1%. 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 of the Investment
Company Act of 1940, 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. An issuers' ability 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.
4. Capital Loss Carryforwards
At November 30, 1999, accumulated net realized capital loss carryforwards
available as a reduction against future net realized capital gains for federal
income tax purposes were: General--$44,985 of which $8,627 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; California--$30,717 of which $5,856 will
expire in 2000, $1,137 will expire in 2001, $13,827 will expire 2003, $9,304
will expire in 2004 and $593 will expire in 2005. 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. 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. California had $725 of capital
loss carryforwards expire on November 30, 1999. Such amount has been
reclassified to paid-in-capital in excess of par to reflect California's federal
tax basis of available accumulated capital loss carryforwards. During the year
ended November 30, 1999, Primary, General and California utilized $656, $6,476
and $5, respectively, of capital loss carryforwards.
5. Acquisition of Investment Adviser
On October 31, 1999, PIMCO Advisors Holdings L.P. ("PAH"), its operating
subsidiary, PIMCO Advisors L.P. ("PIMCO Advisors"), the parent company of
Oppenheimer Capital, and Allianz AG ("Allianz") announced that they have reached
a definitive agreement for Allianz, a German insurance company, to acquire
majority ownership of PIMCO Advisors, including all of the interests held by PAH
(the "Allianz Transaction"). For the Fund, the change of control as a result of
the consummation of the Allianz Transaction (expected to close by the end of the
first quarter of 2000) will result in the automatic termination of the current
investment advisory agreement with OpCap Advisors. The Board of Directors has
approved new agreements with OpCap Advisors to become effective upon
consummation of the Allianz Transaction. The new agreements will be submitted
for approval by the stockholders of the Fund.
19
<PAGE>
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (For a share outstanding throughout each year)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INCOME FROM
INVESTMENT OPERATIONS
---------------------------------------------
Dividends to
Net Asset Net Total Shareholders
Value, Net Realized Income from From Net
Beginning Investment Gain (Loss) Investment Investment
of Year Income on Investments Operations Income
<S> <C> <C> <C> <C> <C>
Primary Portfolio
Year ended November 30, 1999 $1.00 $0.04 $ 0.00 $0.04 $(0.04)
November 30, 1998 1.00 0.05 0.00 0.05 (0.05)
November 30, 1997 1.00 0.05 (0.00) 0.05 (0.05)
November 30, 1996 1.00 0.05 (0.00) 0.05 (0.05)
November 30, 1995 1.00 0.05 0.00 0.05 (0.05)
Government Portfolio
Year ended November 30, 1999 $1.00 $0.04 $ 0.00 $0.04 $(0.04)
November 30, 1998 1.00 0.05 0.00 0.05 (0.05)
November 30, 1997 1.00 0.05 (0.00) 0.05 (0.05)
November 30, 1996 1.00 0.04 (0.00) 0.04 (0.04)
November 30, 1995 1.00 0.05 0.00 0.05 (0.05)
<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 (2) Income
<S> <C> <C> <C> <C> <C>
Primary Portfolio
Year ended November 30, 1999 $1.00 4.41% $2,463.3 0.82% 4.32%
November 30, 1998 1.00 4.90% 2,572.4 0.83% 4.78%
November 30, 1997 1.00 4.85% 2,166.6 0.85% 4.75%
November 30, 1996 1.00 4.69% 1,712.6 0.91% 4.60%
November 30, 1995 1.00 5.19% 1,671.1 0.94% 5.07%
Government Portfolio
Year ended November 30, 1999 $1.00 4.17% $ 84.0 0.95% 4.09%
November 30, 1998 1.00 4.63% 112.1 0.98%(1) 4.53%(1)
November 30, 1997 1.00 4.60% 100.0 0.98%(1) 4.51%(1)
November 30, 1996 1.00 4.51% 101.1 1.00%(1) 4.41%(1)
November 30, 1995 1.00 5.02% 108.6 1.00%(1) 4.91%(1)
</TABLE>
- ---------------------------------
(1) During the fiscal 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 0.99% 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, and 1.02% and 4.89%, respectively, for the year ended November 30,
1995.
(2) Inclusive of expenses offset by earnings credits (See Note 1g in Notes to
Financial Statements).
* Assumes reinvestment of all dividends and distributions.
20
<PAGE>
<TABLE>
<CAPTION>
INCOME FROM
INVESTMENT OPERATIONS
---------------------------------------------------
Net Asset Net Total
Value, Net Realized Income from
Beginning Investment Gain (Loss) Investment
of Year Income on Investments Operations
General Municipal Portfolio
<S> <C> <C> <C> <C>
Year ended November 30, 1999 $ 1.00 $ 0.02 $ (0.00) $ 0.02
November 30, 1998 1.00 0.03 (0.00) 0.03
November 30, 1997 1.00 0.03 0.00 0.03
November 30, 1996 1.00 0.03 0.00 0.03
November 30, 1995 1.00 0.03 (0.00) 0.03
California Municipal Portfolio
Year ended November 30, 1999 $ 1.00 $ 0.02 -- $ 0.02
November 30, 1998 1.00 0.02 -- 0.02
November 30, 1997 1.00 0.03 $ (0.00) 0.03
November 30, 1996 1.00 0.02 -- 0.02
November 30, 1995 1.00 0.03 (0.01) 0.02
New York Municipal Portfolio
Year ended November 30, 1999 $ 1.00 $ 0.02 $ 0.00 $ 0.02
November 30, 1998 1.00 0.03 -- 0.03
November 30, 1997 1.00 0.03 (0.00) 0.03
November 30, 1996 1.00 0.03 -- 0.03
November 30, 1995 1.00 0.03 0.00 0.03
<CAPTION>
Dividends to
Shareholders Capital Net Asset Net Assets,
from Net Contribution Value, End of
Investment by Investment End of Total Year
Income Adviser Year Return* (millions)
General Municipal Portfolio
<S> <C> <C> <C> <C>
Year ended November 30, 1999 $ (0.02) -- $ 1.00 2.29% $ 120.0
November 30, 1998 (0.03) -- 1.00 2.66% 171.8
November 30, 1997 (0.03) -- 1.00 2.74% 137.0
November 30, 1996 (0.03) -- 1.00 2.56% 122.3
November 30, 1995 (0.03) -- 1.00 3.11% 116.0
California Municipal Portfolio
Year ended November 30, 1999 $ (0.02) -- $ 1.00 2.06% $ 66.5
November 30, 1998 (0.02) -- 1.00 2.39% 70.4
November 30, 1997 (0.03) -- 1.00 2.68% 55.7
November 30, 1996 (0.02) -- 1.00 2.42% 53.4
November 30, 1995 (0.03) $0.01 1.00 3.10% 75.9
New York Municipal Portfolio
Year ended November 30, 1999 $ (0.02) -- $ 1.00 2.16% $ 55.3
November 30, 1998 (0.03) -- 1.00 2.50% 84.1
November 30, 1997 (0.03) -- 1.00 2.66% 73.2
November 30, 1996 (0.03) -- 1.00 2.50% 60.0
November 30, 1995 (0.03) -- 1.00 3.07% 52.3
<CAPTION>
RATIOS TO
AVERAGE
NET ASSETS
-----------------------------------
Net Net
Operating Investment
Expenses (4) Income
General Municipal Portfolio
<S> <C> <C>
Year ended November 30, 1999 0.93% 2.26%
November 30, 1998 0.92% 2.62%
November 30, 1997 0.96%(1) 2.70%(1)
November 30, 1996 0.99%(1) 2.53%(1)
November 30, 1995 0.93%(1) 3.07%(1)
California Municipal Portfolio
Year ended November 30, 1999 0.91% 2.03%
November 30, 1998 0.95% 2.36%
November 30, 1997 0.90%(2) 2.64%(2)
November 30, 1996 0.85%(2) 2.42%(2)
November 30, 1995 0.82%(2) 3.05%(2)
New York Municipal Portfolio
Year ended November 30, 1999 0.96% 2.11%
November 30, 1998 0.98% 2.46%
November 30, 1997 0.98%(3) 2.63%(3)
November 30, 1996 0.97%(3) 2.45%(3)
November 30, 1995 0.79%(3) 3.02%(3)
</TABLE>
- ---------------------------------
(1) During the fiscal 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, and 1.02% and 2.98%, respectively, for the year
ended November 30, 1995.
(2) During the fiscal 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, and 0.95% and 2.92%, respectively, for the year
ended November 30, 1995.
(3) During the fiscal 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 0.99% and 2.62%, respectively, for the
year ended November 30, 1997, 0.98% and 2.44%, respectively, for the year
ended November 30, 1996, and 1.00% and 2.81%, respectively, for the year
ended November 30, 1995.
(4) Inclusive of expenses offset by earnings credits (See Note 1g in Notes to
Financial Statements).
* Assumes reinvestment of all dividends and distributions.
21
<PAGE>
- --------------------------------------------------------------------------------
REPORT OF INDEPENDENT ACCOUNTANTS
- --------------------------------------------------------------------------------
To the Shareholders and Board of Directors
of OCC Cash Reserves, Inc.
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 "Fund") at November 30, 1999, 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 accounting principles
generally accepted in the United States of America. These financial statements
and financial highlights (hereafter referred to as "financial statements") are
the responsibility of the Fund'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 auditing standards
generally accepted in the United States of America, 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, 1999 by correspondence with the custodian, provide a reasonable
basis for the opinion expressed above.
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, New York 10036
January 10, 2000
22
<PAGE>
- --------------------------------------------------------------------------------
[LOGO OF CASH RESERVES] [LOGO OF CASH RESERVES]
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Directors and Officers
Joseph M. LaMotta Director, President
Paul Y. Clinton Director
Thomas W. Courtney Director . Primary Portfolio
Lacy B. Herrmann Director . Government Portfolio
George Loft Director . General Municipal Portfolio
Everett Alcenat Vice President . California Municipal Portfolio
John C. Giusio, Jr. Vice President . New York Municipal Portfolio
Matthew Greenwald Vice President
Benjamin Gutstein Vice President
William McDaniel Vice President
Lawrence K. Becker Treasurer
Elliot M. Weiss Secretary
Brian S. Shlissel Assistant Treasurer
Maria Camacho Assistant Secretary
Investment Adviser Annual Report
OpCap Advisors
1345 Avenue of the Americas November 30, 1999
New York, NY 10105
Distributor
OCC Distributors
1345 Avenue of the Americas
New York, NY 10105
Custodian, Transfer and
Shareholder Servicing Agent
State Street Bank and Trust Company
P.O. Box 8505
Boston, MA 02266
</TABLE>
Table of Contents
President's Letter .................... 1
Investment Review ..................... 2
Schedules of Investments .............. 4
Statements of Assets and Liabilities .. 14
Statements of Operations .............. 15
Statements of Changes in Net Assets ... 16
Notes to Financial Statements ......... 18
Financial Highlights .................. 20
Report of Independent Accountants ..... 22 Managed by
OpCap Advisors
This report is authorized for distribution only to shareholders and to others
who have received a copy of the prospectus.
- --------------------------------------------------------------------------------
