<PAGE>
OCC CASH RESERVES OCC CASH RESERVES
DIRECTORS AND OFFICERS
Joseph M. La Motta Director, President & Chairman
V. Lee Barnes Director
Paul Y. Clinton Director
Thomas W. Courtney Director
Lacy B. Herrmann Director
Theodore Mason Director
John C. Giusio, Jr. Vice President
Matthew Greenwald Vice President
Benjamin Gutstein Vice President
William McDaniel Vice President
Brian S. Shlissel Treasurer
Elliot M. Weiss Secretary
INVESTMENT ADVISER
OpCap Advisors
1345 Avenue of the Americas
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 OF CONTENTS
President's Letter.............................. 1
Investment Review............................... 2
Schedules of Investments........................ 4
Statements of Assets and Liabilities............ 12
Statements of Operations........................ 13
Statements of Changes in Net Assets............. 14
Notes to Financial Statements................... 16
Financial Highlights............................ 18
Special Meeting of Shareholders................. 20
-----------------------------------------------------
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, 2000
MANAGED BY OPCAP ADVISORS
<PAGE>
OCC CASH RESERVES
July 14, 2000
DEAR SHAREHOLDER:
We are pleased to report to you on the investment activities of OCC Cash
Reserves (the "Fund") for the six month period ended May 31, 2000. The Fund
continued to meet its objectives of providing safety of principal, liquidity and
maximum current income through investment in taxable and tax-exempt money market
securities. Detailed information for each of the five portfolios comprising the
Fund is presented in the Investment Review and financial statements that follow.
Since our last correspondence to shareholders six months ago, the stock and bond
markets have experienced increased volatility. During the first six months of
2000, the Federal Reserve Board (the "Fed") raised the Federal Funds Rate from
5.5% to 6.5% in three increments. The Fed usually adjusts the rate by 25 basis
points, but at the May 16th meeting, the Fed raised the rate by 50 basis points
further demonstrating its resolve to contain inflation.
Primarily as a result of these rate increases, the pace of economic activity and
job growth has moderated. Signs of modest inflation are present, especially in
the price of oil, but it is not clear if this is a temporary or longer-term
phenomenon. From past experience, it can take up to eight months for interest
rate increases to impact the economy, so it is unlikely that this year's rate
adjustments have been in place long enough to slow the economy significantly or
curtail inflation. With this in mind, the Fed took no action during their June
27-28 meeting, leaving the targeted Fed Funds Rate unchanged at 6.5%. The Fed
did maintain a tightening bias and might raise short-term interest rates in the
second half of 2000 if the economy continues to strengthen and inflation
increases.
We at the Fund, together with OpCap Advisors, the Fund's inventment adviser want
to thank you for your continued support and look forward to the opportunity to
continue to serve your money market fund needs.
Sincerely,
/s/ Joseph M. LaMotta
Joseph M. LaMotta
President
[sidenote:]
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
<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; and domestic or foreign commercial
paper of prime quality and participation interests in loans of equivalent
quality extended by banks to such companies.
SEMI-ANNUAL REVIEW
During the six months ended May 31, 2000, the daily dividends of the Primary
Portfolio averaged 5.19% on an annual basis and 5.31% compounded monthly. At May
31, 2000, the Portfolio had a seven-day compounded yield of 5.68%, up from 4.91%
at the beginning of the year. The average maturity of the Portfolio during the
period ranged from a low of 36 days to a high of 58 days and on May 31, 2000,
stood at 42 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.
SEMI-ANNUAL REVIEW
The Government Portfolio's daily dividend averaged 4.86% on an annual basis and
4.97% compounded monthly for the six months ended May 31, 2000. On May 31, 2000,
the seven-day compounded yield of the Portfolio was 5.57%, up from 4.60% at
November 30, 1999. The average maturity of the Portfolio during the year ranged
from 21 days to 61 days. On May 31, 2000, it was 43 days.
GENERAL MUNICIPAL PORTFOLIO
OBJECTIVE
Seeks safety of principal, liquidity and maximum current income exempt from
Federal income taxes by investing in a diversified portfolio of high-grade
municipal money market securities. 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 2.83% on an annual
basis and 2.85% compounded monthly during the six months ended May 31, 2000. For
an investor not subject to the alternative minimum tax in the top federal income
tax bracket of 39.6%, the effective compounded monthly yield was equivalent to a
taxable return of 4.72%. The seven-day compounded yield on May 31, 2000 was
3.10% compared with the beginning of the fiscal year when it was 2.81%. Average
maturity for the Portfolio ranged from 35 days to 63 days and on May 31, 2000,
it was 36 days.
CALIFORNIA MUNICIPAL PORTFOLIO
OBJECTIVE
Seeks safety of principal, liquidity and maximum current income exempt from
Federal and California personal income taxes by investing 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.
SEMI-ANNUAL REVIEW
For the six months ended May 31, 2000, the daily dividend averaged 2.29% on an
annual basis and 2.30% compounded monthly. For a person not subject to the
alternative minimum tax in the top federal and California income tax brackets of
39.6% and 9.3%, respectively, the monthly compounded return would be equivalent
to a taxable return of 4.20%. During the six months ended May 31, 2000, the
seven-day compounded yield increased from 2.48% at November 30, 1999 to 2.75% at
May 31, 2000. The average maturity of the securities in the Portfolio ranged
from 32 days to 70 days and stood at 33 days on May 31, 2000.
2
<PAGE>
NEW YORK MUNICIPAL PORTFOLIO
OBJECTIVE
Seeks safety of principal, liquidity and maximum current income exempt from
Federal, New York State and New York City income taxes by investing 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
During the six months ended May 31, 2000, the daily dividends of the Portfolio
averaged 2.70% on an annual basis and 2.73% compounded monthly. This was
equivalent to an effective taxable yield of 4.99% 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 2.69% to 3.15% during the six months ended May 31, 2000.
The average maturity of the Portfolio ranged between 30 days to 54 days. On May
31, 2000, it stood at 31 days
3
<PAGE>
MAY 31, 2000
--------------------------------------------------------------------------------
SCHEDULES OF INVESTMENTS (UNAUDITED)
--------------------------------------------------------------------------------
PRIMARY PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) VALUE
--------------------------------------------------------------------------------
<S> <C> <C>
BANK NOTES--2.9%
$75,000 Wachovia Bank, NC,
5.65%-5.94%, 6/5/00-8/21/00
(amortized cost--$74,605,493) ................. $ 74,605,493
-------------
CERTIFICATES OF DEPOSIT--16.6%
90,000 Bank of Nova Scotia,
6.08%-6.66%, 6/19/00-8/21/00 .................. 90,000,000
105,000 Canadian Imperial Bank of
Commerce,
6.00%-6.17%, 6/12/00-7/10/00 .................. 105,000,000
100,000 Rabobank Nederland NV,
6.17%-6.70%, 6/30/00-2/1/01 ................... 100,000,000
80,000 Societe Generale,
6.00%-6.09%, 6/12/00-6/14/00 .................. 80,000,000
50,000 Toronto Dominion Bank,
6.14%, 6/26/00 ................................ 50,000,000
-------------
Total Certificates of Deposit
(amortized cost--$425,000,000) ........................... 425,000,000
-------------
COMMERCIAL PAPER--69.6%
90,000 Abbey National North America,
5.93%, 6/19/00 ................................ 89,733,150
25,000 ABN-Amro Bank North America
Finance Inc.,
6.12%, 6/30/00 ................................ 24,876,750
50,000 ABN-Amro Bank North America
Chicago Inc.,
6.02%, 6/12/00 ................................ 50,000,000
85,000 American Express Credit Corp.,
6.48%-6.56%, 6/28/00-7/31/00 .................. 84,374,333
50,000 American General Finance Corp.,
6.58%, 7/31/00 ................................ 49,451,667
25,000 Associates Corporation of N.A.,
6.56%, 7/6/00 ................................. 24,840,556
100,000 BankAmerica Corp, 6.13%-6.66%,
7/24/00-8/28/00 ............................... 98,806,119
54,200 Bell South Telecommunications Inc.,
6.01%, 6/6/00-6/7/00 .......................... 54,150,234
73,415 British Columbia (Province of),
6.05%-6.68%, 7/5/00-10/30/00 .................. 72,185,102
$75,000 Canadian Wheat Board,
5.85%-6.52%, 6/5/00-7/19/00 ................... $ 74,797,433
30,000 CIT Group Holdings, Inc.,
6.64%, 8/23/00 ................................ 29,540,733
75,000 Daimler-Chrysler North America
Holding Corp.,
6.61%-6.64%, 8/21/00 .......................... 73,883,156
69,300 Dover Corp.,
6.50%, 6/8/00-6/19/00 ......................... 69,169,440
85,000 Ford Motor Credit Europe plc,
6.48%-6.56%, 6/29/00-7/13/00 ................. 84,468,479
4,700 Ford Motor Credit Co.,
6.54%, 6/5/00 ................................. 4,696,585
25,000 General Electric Capital Corp.,
5.89%, 7/24/00 ................................ 24,783,215
60,000 General Electric Capital Services Inc.,
6.08%-6.17%, 6/27/00-9/18/00 .................. 59,307,825
80,000 General Motors Acceptance Corp.,
6.34%-6.56%, 6/22/00-7/17/00. ................. 79,469,939
65,000 Goldman Sachs Group L.P.,
6.57%-6.59%, 7/10/00-7/20/00. ................. 64,509,579
75,000 Halifax plc,
5.99%-6.26%, 6/5/00-6/20/00 ................... 74,824,542
25,000 Household Financial Corp.,
6.55%, 7/17/00 ................................ 24,790,764
38,000 IBM Corp.,
6.44%, 6/1/00 ................................. 38,000,000
50,000 Morgan Stanley Dean Witter & Co.,
6.10%, 6/26/00 ................................ 49,788,194
50,000 Norwest Financial Inc.,
6.56%, 7/11/00-7/18/00 ........................ 49,603,667
105,000 Oesterreichische Kontrollbank AG,
5.92%-6.10%, 6/15/00-7/5/00 ................... 104,617,706
75,000 Queensland Treasury Corp.,
5.89%-5.91%, 6/5/00-6/26/00 ................... 74,860,549
43,337 Rio Tinto America Inc.,
6.50%, 6/13/00-6/21/00 ........................ 43,203,005
80,000 Svenska Handelsbanken Inc.,
5.92%-6.48%, 6/26/00-7/17/00 .................. 79,548,067
65,000 UBS Finance Delaware Inc.,
6.77%, 6/1/00 ................................. 65,000,000
65,500 Wal Mart Stores Inc.,
6.20%-6.50%, 6/5/00-7/5/00 .................... 65,254,375
-------------
Total Commercial Paper
(amortized cost--$1,782,535,164) ......................... 1,782,535,164
-------------
</TABLE>
4
<PAGE>
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
PRINCIPAL
AMOUNT
(000) VALUE
--------------------------------------------------------------------------------
<S> <C> <C>
U.S. GOVERNMENT AGENCIES--8.2%
$73,000 Federal Home Loan Bank,
6.36%, 4/3/01 ................................. $ 73,000,000
40,000 Federal Home Loan Mortgage
Corporation, 6.50%, 1/19/01 ................... 40,000,000
98,000 Student Loan Marketing Association,
6.04%-6.09%, 8/17/00-9/21/00. ................. 98,000,000
--------------
Total U.S. Government Agencies
(amortized cost--$211,000,000) ........................... 211,000,000
--------------
<CAPTION>
<S> <C> <C> <C>
Total Investments
(amortized cost--$2,493,140,657+) .......... 97.3% 2,493,140,657
Other assets less liabilities ................ 2.7 67,889,880
------ --------------
Net Assets ................................... 100.0% $2,561,030,537
====== ==============
</TABLE>
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
GOVERNMENT PORTFOLIO
--------------------------------------------------------------------------------
<S> <C> <C>
U.S. GOVERNMENT AGENCIES--98.9%
FEDERAL HOME LOAN BANK--17.8%
$1,080 5.95%, 6/21/00 .................................. $ 1,076,430
2,039 5.97%, 6/7/00 ................................... 2,036,971
8,000 6.02%, 6/30/00 .................................. 7,961,204
6,210 6.36%, 6/28/00-4/3/01 ........................... 6,192,400
-----------
Total Federal Home Loan Bank
(amortized cost--$17,267,005) ............................ 17,267,005
-----------
FEDERAL HOME LOAN MORTGAGE CORPORATION--40.7%
2,000 5.80%, 6/30/00 .................................. 1,990,656
1,500 5.92%, 6/8/00 ................................... 1,498,273
2,241 6.03%, 6/13/00 .................................. 2,236,496
3,000 6.30%, 6/1/00 ................................... 3,000,000
16,150 6.35%, 6/9/00-6/27/00 ........................... 16,099,403
290 6.42%, 7/27/00 .................................. 287,104
7,000 6.44%, 7/11/00 .................................. 6,949,911
1,500 6.51%, 8/24/00 .................................. 1,477,216
5,000 6.53%, 8/24/00 .................................. 4,923,817
1,000 6.55%, 8/24/00 .................................. 984,715
-----------
Total Federal Home Loan Mortgage Corporation
(amortized cost--$39,447,591) ............................ 39,447,591
-----------
FEDERAL NATIONAL MORTGAGE ASSOCIATION--36.2%
$2,000 5.64%, 6/8/00 ................................... $ 1,997,809
3,000 5.93%, 8/3/00 ................................... 2,968,868
2,353 5.97%, 6/15/00 .................................. 2,347,537
1,090 6.02%, 6/5/00 ................................... 1,089,271
625 6.26%, 6/1/00 ................................... 625,000
3,300 6.33%, 6/19/00 .................................. 3,289,556
1,250 6.34%, 6/20/00 .................................. 1,245,817
10,000 6.40%, 7/17/00 .................................. 9,918,222
2,000 6.46%, 9/2/00 ................................... 1,944,731
6,800 6.54%, 8/17/00 .................................. 6,704,879
3,000 6.64%, 11/22/00 ................................. 2,903,720
-----------
Total Federal National Mortgage Association
(amortized cost--$35,035,410) ............................ 35,035,410
-----------
STUDENT LOAN MARKETING ASSOCIATION--4.2%
2,000 6.04%, 9/21/00 .................................. 2,000,000
2,000 6.09%, 8/17/00 .................................. 2,000,000
-----------
Total Student Loan Marketing Association
(amortized cost--$4,000,000) ............................... 4,000,000
-----------
<CAPTION>
<S> <C> <C> <C>
Total Investments
(amortized cost--$95,750,006+) ............. 98.9% 95,750,006
Other assets less liabilities ................ 1.1 1,078,353
------ -----------
Net Assets ................................... 100.0% $96,828,359
====== ===========
</TABLE>
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
GENERAL MUNICIPAL PORTFOLIO
--------------------------------------------------------------------------------
<S> <C> <C>
ALABAMA--1.9%
$2,000 PHENIX CITY EIR,
MEAD PROJ., SER. A,
3.90%, 6/5/00* ................................ $ 2,000,000
-----------
ALASKA--1.0%
1,105 Ancorage WR,
4.50%, 9/1/00 ................................. 1,106,604
-----------
ARIZONA--0.9%
1,000 Maricopa Cnty Dev., Ser. 1988,
3.70%, 7/3/00* ................................ 1,000,000
-----------
COLORADO--3.1%
3,300 Denver City & Cnty., Colorado
Airport Sys., (LC; Bayerische
Landesbank Girozentrale),
3.80%, 7/10/00 ................................ 3,300,000
-----------
</TABLE>
5
<PAGE>
MAY 31, 2000
--------------------------------------------------------------------------------
SCHEDULES OF INVESTMENTS (UNAUDITED)(CONTINUED)
--------------------------------------------------------------------------------
GENERAL MUNICIPAL PORTFOLIO (CONT'D.)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) VALUE
--------------------------------------------------------------------------------
<S> <C> <C>
DELAWARE--3.2%
$3,400 Delaware St. EDAR, Delmarva
Light & Power Co. Proj.,
4.50%, 10/1/17* ............................... $ 3,400,000
-----------
FLORIDA--7.2%
1,800 Hillsborough Cnty. IDA,
National Gypsum Co.,
(LC; Wachovia Bank),
4.45%, 4/1/30* ................................ 1,800,000
1,000 Jacksonville EAR., Ser. 16,
4.00%, 10/1/00 ................................ 1,000,970
3,900 Orange Cnty.,
4.625%, 7/6/00 ................................ 3,900,000
1,000 Sarasota WSUR,
(LC; FGIC),
5.75%, 10/1/00* ............................... 1,006,471
-----------
7,707,441
-----------
GEORGIA--7.8%
1,200 Burke Cnty., PCR Ser. A,
(LC; FGIC),
3.70%, 7/3/00* ................................ 1,200,000
2,100 Burke Cnty., PCR, Oglethorpe
Power Co., (LC; FGIC),
4.00%, 1/1/16* ................................ 2,100,000
5,000 Georgia Municipal Electric Auth.,
Ser. A, (LC; Morgan Guaranty
Trust),
3.65%-3.90%, 6/1/00-6/6/00 .................... 5,000,000
-----------
8,300,000
-----------
HAWAII--0.9%
1,000 Hawaii St. Secondary Mkt. Svcs.
Corp., SLR, Ser. III,
(LC; National Westminster
Bank plc),
4.10%, 9/1/10* ................................ 1,000,000
-----------
IOWA--3.4%
3,600 Iowa St. Sch. CAP, (LC; Bayerische
Landesbank Girozentrale),
4.00%-4.75%,
6/23/00-2/01/01 ............................... 3,608,093
-----------
ILLINOIS--9.5%
3,100 Chicago O'Hare Int'l. Airport,
(LC; Bayerische Landesbank),
4.10%, 1/1/18 ................................. 3,100,000
$1,100 Chicago O'Hare Int'l. Airport,
(LC; Societe Generale),
4.15%, 1/1/18 ................................. $ 1,100,000
3,000 Chicago Water, (LC; Bank One),
4.05%, 11/1/30 ................................ 3,000,000
2,900 Illinois Dev. PCR
4.05%, 6/1/28 ................................. 2,900,000
-----------
10,100,000
-----------
INDIANA--0.9%
1,000 Indiana University, Student Fee, Ser. J,
4.35%, 8/1/00 ................................. 1,000,805
-----------
KENTUCKY--2.1%
200 Boone Cnty. PCR, Cincinnati
Gas & Elec. Co. Proj.,
Ser. A, (LC; Union
Bank of Switzerland),
4.55%, 8/1/13* ................................ 200,000
2,000 Kentucky HEL, Student Loan Corp.,
SLR, Ser. E,
(Insd.; AMBAC),
3.90%, 12/1/11* ............................... 2,000,000
-----------
2,200,000
-----------
LOUISIANA--1.7%
500 Iberville Parish,
Dow Chemical Co. Proj.,
4.60%, 6/1/29* ................................ 500,000
1,300 St. Charles Parish PCR,
Shell Oil Co., Norco Proj.,
4.55%, 9/1/23* ................................ 1,300,000
-----------
1,800,000
-----------
MASSACHUSSETTS--0.9%
1,000 Brookline Public & School
Improvements GO,
4.90%, 9/1/00 ................................. 1,003,105
-----------
MARYLAND--5.6%
1,000 Anne Arundel Cnty. EDR,
3.95%, 6/7/00 ................................. 1,000,000
5,000 Health & Higher Education,
Ser.C,
3.80%-3.95%, 6/12/00-7/6/00 ................... 5,000,000
-----------
6,000,000
-----------
</TABLE>
6
<PAGE>
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
PRINCIPAL
AMOUNT
(000) VALUE
--------------------------------------------------------------------------------
<S> <C> <C>
MISSOURI--3.3%
$2,300 Kansas City HR,
(LC; MBIA),
4.50%, 10/15/15 ............................... $ 2,300,000
1,190 Missouri St., GO,
Fourth State, Ser. A,
6.25%, 6/1/00 ................................. 1,190,000
-----------
3,490,000
-----------
NEBRASKA--3.5%
2,100 Nebraska HEL Prog., Student
Loan, (LC; SLMA), Ser. A,
4.30%, 12/1/16* ............................... 2,100,000
1,600 Nebraska HEL Prog., Student
Loan, (LC; SLMA), Ser. C,
4.30%, 8/1/18* ................................ 1,600,000
-----------
3,700,000
-----------
NEW JERSEY--5.9%
2,000 New Jersey GO, Ser. B,
6.25%, 1/15/01 ................................ 2,025,387
1,500 New Jersey GO, Ser. D,
5.25%, 2/15/01 ................................ 1,511,237
1,000 New Jersey TRAN, Ser. 1997A,
3.90%, 6/1/00 ................................. 1,000,000
1,750 Somerset Cnty.
Public Improvements GO,
5.10%, 9/15/00 ................................ 1,756,897
-----------
6,293,521
-----------
NEW YORK--3.7%
3,500 MTA,
3.80%, 6/1/00 ................................. 3,500,000
500 New York & New Jersey
Port Auth., Ser. B,
3.90%, 6/1/00 ................................. 500,000
-----------
4,000,000
-----------
OHIO--2.8%
3,000 Hamilton Cnty., HR,
Bethesda Hospital Inc.,
(LC; RaboBank Nederland),
4.20%, 2/15/24* ............................... 3,000,000
-----------
PENNSYLVANIA--1.9%
2,000 Pennsylvania St. HEA, SLR,
Ser. A, (LC; SLMA),
4.10%, 12/1/24* ............................... 2,000,000
-----------
SOUTH CAROLINA--1.2%
1,300 BERKELEY CNTY. EXEMPT, IFR
AMOCO CHEM. CO. PROJ.,
4.55%, 4/1/28* ................................ 1,300,000
-----------
TEXAS--17.4%
$2,500 Brazos Dev. Corp.,
3.60%, 6/5/00* ................................ $ 2,500,000
1,000 Brazos HEA, Ser. B-1,
(CS; SLMA),
4.15%, 6/1/23* ................................ 1,000,000
3,300 Dallas Area Rapid Transit,
STR, Ser. B,
(LC; Westdeutsche Landesbank),
3.60%-3.70%, 6/12/00-7/03/00 .................. 3,300,000
300 Grapevine IDR, Multiple Mode,
American Airlines Proj., Ser.
B2, (LC; Bayerische Landesbank),
4.40%, 12/1/24* ............................... 300,000
2,100 Gulf Coast WDA, EFR,
Amoco Oil Co. Proj.,
4.55%, 1/1/26* ................................ 2,100,000
1,600 Gulf Coast WDA, PCR,
Amoco Oil Co. Proj.,
4.55%, 5/1/24* ................................ 1,600,000
400 Harris Cnty., PCR,
4.40%, 8/15/27* ............................... 400,000
1,000 Lower Neches Valley Auth.,
Mobil Oil Refining Co. Proj.,
4.45%, 4/1/29* ................................ 1,000,000
410 Texas HEA,
Ser. B, (Insd.; FGIC),
4.30%, 12/1/25* ............................... 410,000
5,000 Texas St., GO, Ser. A,
4.50%, 8/31/00 ................................ 5,009,561
1,000 Texas St., FAR,
Ser. A, (Insd.; AMBAC),
4.50%, 2/1/01 ................................. 1,002,192
-----------
18,621,753
-----------
UTAH--3.7%
1,900 Intermountain Pwr. Agy.,
Ser. '85F, (Insd.; AMBAC),
3.95%, 6/12/00 ................................ 1,900,000
2,000 Utah St. Brd. Regents SLR,
Ser. L, (Insd.; AMBAC),
4.10%, 11/4/25* ............................... 2,000,000
-----------
3,900,000
-----------
WISCONSIN--2.4%
1,500 Kenosha Univ. TRAN,
School Dist. No. 001,
4.15%, 10/6/00 ................................ 1,502,004
1,100 Wisconsin St. GO,
4.00%, 7/17/00 ................................ 1,100,000
-----------
2,602,004
-----------
</TABLE>
7
<PAGE>
MAY 31, 2000
--------------------------------------------------------------------------------
SCHEDULES OF INVESTMENTS (UNAUDITED)(CONTINUED)
--------------------------------------------------------------------------------
GENERAL MUNICIPAL PORTFOLIO (CONT'D.)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) VALUE
--------------------------------------------------------------------------
<S> <C> <C>
WYOMING--1.6%
$1,100 Sublette Cnty. PCR.,
Exxon Proj., Ser B.,
4.40%, 7/1/17* $ 1,100,000
600 Sweetwater Cnty. PCR,
Idaho Power Co. Proj.,
4.35%, 7/15/26* 600,000
-------------
1,700,000
-------------
<CAPTION>
<S> <C> <C> <C>
Total Investments
(amortized cost--$104,133,326+) ............ 97.5% 104,133,326
Other assets less liabilities ................ 2.5 2,619,621
-------- -------------
Net Assets ................................... 100.0% $106,752,947
======== ===============
</TABLE>
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
CALIFORNIA MUNICIPAL PORTFOLIO
--------------------------------------------------------------------------------
<S> <C> <C>
CALIFORNIA MUNICIPAL BONDS & NOTES--95.2%
$1,700 Anaheim CP, 1993 Ref. Projs.
(Insd.; AMBAC),
3.70%, 8/1/19* ................................ $ 1,700,000
500 California PCFA, PCR, So. Calif.
Edison Co., Ser. B,
4.50%, 2/28/08* ............................... 500,000
500 California PCFA, PCR, Pacific
Elec. & Gas, Ser. C,
(LC; Morgan Guaranty Trust),
4.50%, 11/1/26* ............................... 500,000
1,800 California PCFA, SWDR,
Shell Martinez Refining, Ser. B,
4.10%, 11/1/31* ............................... 1,800,000
1,720 California SFIFP,
Ser. C, (LC; KBC Bank N.V.),
3.80%, 7/1/22 ................................. 1,720,000
5,300 California St. GO,
3.25%-4.10%, 6/6/00-8/2/00 .................... 5,300,000
2,300 California SCD Auth. Rev. Ctfs.
Partn., (Insd.; MBIA),
4.25%, 4/1/28* ................................ 2,300,000
2,000 California TFAR
4.00%, 11/1/27* ............................... 2,000,000
1,500 California SCD Auth. Rev. Ctfs.
Partn., John Muir/Mt. Diablo
Health Proj., (Insd.; AMBAC),
4.25%, 8/15/27* ............................... 1,500,000
$2,000 California SCD Corp. Rev., ID,
4.00%, 6/30/00 ................................ $ 2,001,259
2,400 Golden Empire School Fing.
Auth. CA, Kern High School
Dist., Ser. A,
3.55%, 12/01/24* .............................. 2,400,000
400 Irvine Ranch WD, Ser. B,
(LC; Landesbank Hessen),
4.40%, 5/20/03-11/1/04* ....................... 400,000
2,000 Kern Cnty. TRAN,
4.00%, 6/30/00 ................................ 2,001,305
1,700 Los Angeles Water & Power
Elec. Plant, 4.25%, 6/19/00 ................... 1,700,000
2,000 Los Angeles Cnty. TRAN, Ser. A,
4.00%, 6/30/00 ................................ 2,001,382
3,000 Los Angeles Wastewater Sys.,
3.15%-3.35%, 6/5/00-6/7/00 .................... 3,000,000
2,600 Los Angeles Cnty. Cap. Assets,
Ser. A, 3.15%, 6/5/00 ......................... 2,600,000
2,000 Metropolitan Water Dist. of
So. Calif., 3.25%, 6/1/00 ..................... 2,000,000
3,000 Metropolitan Water Dist. of So.
Calif., Ser. B, 4.20%, 11/2/00 ................ 3,000,000
1,100 Orange Cnty. Impt. Act 1915,
1915 Adj., (Insd.; FGIC),
4.15%, 9/2/18* ................................ 1,100,000
1,700 Orange Cnty. WD CP,
Ser. B, (LC; Bayerische Landesbank),
4.25%, 8/15/15* ............................... 1,700,000
1,500 Pacific Elec. & Gas,
(LC; Morgan Guaranty Trust),
3.25%, 6/12/00 ................................ 1,500,000
2,000 San Bernardino Cnty. TRAN,
3.75%, 9/29/00 ................................ 2,002,340
1,300 San Bernardino Cnty.,
Med. Ctr. Proj., (Insd.; MBIA),
3.40%, 8/1/26 ................................... 1,300,000
2,000 San Diego Gas & Electric,
Ser. 1995 A,
3.90%, 9/7/00 ................................. 2,000,000
1,100 San Diego Tax & Rev. Ser A,
4.25%, 9/29/00 ................................ 1,103,016
2,000 San Diego Cnty. Trans. Commn.,
3.40%, 12/9/99 ................................ 2,000,000
3,000 San Francisco Bay Auth.,
(LC; Union Bank of Switzerland),
2.90%-2.95%, 6/1/00-7/3/00 .................... 3,000,000
2,600 Santa Joaquin Cnty. TA,
3.45%, 7/3/00 ................................. 2,600,000
</TABLE>
8
<PAGE>
<TABLE>
<CAPTION>
----------------------------------------------------------------------------
PRINCIPAL
AMOUNT
(000) VALUE
----------------------------------------------------------------------------
<S> <C> <C>
CALIFORNIA MUNICIPAL BONDS & NOTES--(CONT'D.)
$1,000 Santa Barbara Cnty.,
TRAN, Ser. A,
4.25%, 9/29/00 ................................ $ 1,002,740
1,000 Southeast Res. Recovery Facs.
Auth., Ser. A,
3.65%, 12/1/18* ............................... 1,000,000
400 So. Calif. Edison Co., Ser. C,
4.5%, 2/28/08* ................................ 400,000
1,000 So. Calif. Pub. PAR,
(LC; AMBAC), Palo Verde Proj. C,
3.70%, 7/1/17* ................................ 1,000,000
2,100 So. Calif. Pub. PAR,
Transmission Proj.,
(LC; Barclays Bank plc),
3.70%, 7/1/19* ................................ 2,100,000
1,000 Transmission Auth. of
Northern Calif.,
3.35%, 6/5/00 ................................. 1,000,000
1,000 University of Calif., Board of
Regents, Ser. A,
4.20%, 6/14/00 ................................ 1,000,000
1,000 West Contra Costa CA, TRAN,
Union School Dist.,
4.50%, 12/6/00 ................................ 1,002,955
-------------
Total California Municipal Bonds & Notes
(amortized cost--$65,234,997) ............................ 65,234,997
-------------
TAX-EXEMPT COMMERCIAL PAPER--2.9%
PUERTO RICO--2.9%
2,000 Puerto Rico Gov't. Dev. Bank,
4.15%, 9/5/00
(amortized cost--$2,000,000) .................. 2,000,000
-------------
<CAPTION>
<S> <C> <C> <C>
Total Investments
(amortized cost--$67,234,997+) ............. 98.1% 67,234,997
Other assets less liabilities ................ 1.9 1,314,114
-------- -------------
Net Assets ................................... 100.0% $ 68,549,111
======== =============
</TABLE>
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
NEW YORK MUNICIPAL PORTFOLIO
--------------------------------------------------------------------------------
<S> <C> <C>
NEW YORK MUNICIPAL BONDS & NOTES--98.0%
$400 Babylon NY, IDA,
(LC; Union Bank of
Switzerland AG),
4.40%, 12/1/24* ............................... $ 400,000
$1,000 Broome Cnty., BAN,
4.75%, 4/3/01 ................................. $ 1,004,422
2,000 Great Neck North WR, Ser. A,
(Insd.; FGIC),
4.15%, 1/1/20* ................................ 2,000,000
Long Island Power Auth.,
1,900 ESR, Ser. 6,
(LC; ABN-Amro Bank N.V.),
4.30%, 5/1/23* ................................ 1,900,000
1,000 Ser. 3, (LC; Bayerische
Landesbank), 3.65%, 6/5/00 .................... 1,000,000
3,500 MTA Transit Facilities TRAN,
Special Obligation, Ser. 98-Sub.
Ser. B, (LC; ABN-Amro Bank NV),
3.50%-3.90%, 6/5/00-7/10/00 ................... 3,500,000
1,500 Municipal Assistance Corp.,
Ser. E, 5.50%, 7/1/00 ......................... 1,502,516
Nassau Cnty. IDA, CFR
1,510 Hofstra University,
4.25%, 7/1/00 ................................. 1,510,728
1,200 Winthrop Univ.Hospital,
4.30%, 3/1/28* ................................ 1,200,000
New York City, GO,
1,900 Sub. Ser. A-10, Sub. Ser. B-2,
Sub. Ser. B-3,
(LC; Morgan Guaranty Trust),
4.45%, 8/1/16-8/15/20* ........................ 1,900,000
1,400 Ser. B, (Insd; FGIC),
4.45%, 10/1/21* ............................... 1,400,000
1,800 Ser. B2 Sub. Ser. B5, (Insd; MBIA),
4.30%, 8/15/11* ............................... 1,800,000
1,000 Ser. H,
7.875%, 8/1/00 ................................ 1,006,947
1,000 New York City Municipal,
Water Fin. Ser. A,
4.45%, 6/15/25 ................................ 1,000,000
2,000 New York City Transitional FAR,
Future Tax, Sec. D-Ser. A-1,
(LC; Societe Generale),
4.15%, 11/15/28* .............................. 2,000,000
New York City Trust CRR,
1,000 Carnegie Hall, (LC;
Westdeutsche Landesbank),
3.80%, 12/1/15* ............................... 1,000,000
1,700 Museum of Broadcasting,
(LC; KBC Bank NV),
3.70%, 5/1/14* ................................ 1,700,000
2,800 Soloman R. Guggenheim, Series B,
(LC; Westdeutsche Landesbank),
4.25%, 12/1/15* ............................... 2,800,000
</TABLE>
9
<PAGE>
MAY 31, 2000
----------------------------------------------------------------------------
SCHEDULES OF INVESTMENTS (UNAUDITED)(CONCLUDED)
----------------------------------------------------------------------------
NEW YORK MUNICIPAL PORTFOLIO (CONT'D.)
----------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) VALUE
----------------------------------------------------------------------------
<S> <C> <C>
NEW YORK MUNICIPAL BONDS & NOTES (CONT'D.)
$1,200 B-Convertible (LC; Chase
Manhattan Bank), 4.35%, 7/1/19 ................ $ 1,200,000
New York State DAR,
2,000 Columbia University,
3.90%, 6/1/00 ................................. 2,000,000
750 Cornell University - Ser. B,
(LC; Morgan Guaranty Trust) ,
4.30%, 7/1/25* ................................ 750,000
1,100 Memorial Sloan-Kettering Cancer
Center, A-Convertible
(LC; Chase Manhattan Bank),
4.35%, 7/1/19* ................................ 1,100,000
1,600 Oxford University Press Inc.,
(LC; Landesbank Hessen),
3.80%, 7/1/25* ................................ 1,600,000
New York State ERDA, PCR,
2,200 Niagara Mohawk Power Corp.
Proj., Ser. A, (LC; Toronto
Dominion Bank),
4.40%-4.45%, 7/1/15-12/1/26* .................. 2,200,000
400 Niagara Mohawk Power Corp.
Proj., Ser. B, (LC; Morgan
Guaranty Trust),
4.50%, 7/1/27* ................................ 400,000
1,300 New York State Electric & Gas, Ser. C,
(LC; Morgan Guaranty Trust),
4.25%, 6/1/29* ................................ 1,300,000
1,300 Rochester Elec. & Gas Corp., Ser. A,
(Insd; MBIA),
3.85%, 8/1/23* ................................ 1,300,000
2,200 New York State Environmental GO,
Ser. 1997A, (LC; Bayerische
Landesbank),
4.85%, 6/1/00 ................................. 2,200,000
New York State LGAC,
1,000 Ser. A, (Insd; GO of Corp.),
7.00%, 4/1/01
(Prerefunded @ 102, 4/1/01)++* ................ 1,040,205
$2,000 Ser. B, (Insd; GO of Corp.),
7.50%, 4/1/20 (Prerefunded @ 102,
4/1/01)++ ..................................... $ 2,090,880
2,500 Ser. E, (LC; Societe Generale),
7.00%, 4/1/01* ................................ 2,500,000
1,200 New York State MCF, FAR,
Lenox Hill Hospital, Ser. A,
(LC; Chase Manhattan Bank),
3.75%, 11/1/08* ............................... 1,200,000
2,500 New York State PAR,
3.75%, 7/5/00 ................................. 2,500,000
550 New York State TA,
(Insd; FGIC),
4.35%, 1/1/24* ................................ 550,000
1,800 Port Auth. of New York &
New Jersey, Ser. A,
3.19%-4.15%, 6/12/00-6/19/00 .................. 1,800,000
1,000 Port Auth. of New York & New Jersey,
Versatile Structure Obligation,
4.30%, 8/1/24* ................................ 1,000,000
1,200 St. Lawrence Cnty. IDA, EIR,
Reynolds Metals Co. Proj.,
(LC; Royal Bank of Canada),
3.85%, 5/1/25* ................................ 1,200,000
1,000 St. Lawrence Cnty. IDA, PCR,
Reynolds Metals Co. Proj.,
(LC; Bank of Nova Scotia),
4.40%, 12/1/07* ............................... 1,000,000
2,000 Smithtown Central School District,
GO, 3.80%, 6/26/00 ............................ 2,000,526
1,000 SUFFOLK CNTY., GO, SER. I
4.50%, 8/10/00 ................................ 1,001,061
-------------
Total New York Municipal Bonds & Notes
(amortized cost--$60,557,285) ............................ 60,557,285
-------------
<CAPTION>
<S> <C> <C> <C>
Total Investments
(amortized cost--$60,557,285+) ............. 98.0% 60,557,285
Other assets less liabilities ................ 2.0 1,241,353
-------- -------------
Net Assets ................................... 100.0% $ 61,798,638
======== =============
</TABLE>
--------------------------------------------------------------------------------
* Variable Rate Demand Notes. 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.
+ Federal income tax basis of portfolio securities is the same as for financial
reporting purposes.
++ Bonds which are pre-refunded are collateralized by U.S. Government or other
eligible securities which are held in escrow and used to pay principal and
interest and retire the bonds at the earliest refunding date.
10
<PAGE>
Abbreviations:
AMBAC American Mortgage Bond Assurance
Corporation
BAN Bond Anticipation Notes
CAP Cash Anticipation Program
CFR Civic Facilities Reserve
CP Certificates of Participation
CRR Cultural Resources Revenue
CS Credit Support
DAR Dormitory Authority Revenue
EAR Electric Authority Revenue
EDAR Economic Development Authority Revenue
EDR Economic Development Revenue
EFR Environment Facilities Revenue
EIR Environment Improvement Revenue
ERDA Energy Research & Development Authority
ESR Electric Systems Revenue
FAR Finance Authority Revenue
FGIC Financial Guaranty Insurance Corporation
GO General Obligation
HEA Higher Education Authority
HEL Higher Education Loan
HR Hospital Revenue
ID Industrial Development
IDA Industrial Development Authority
IDR Industrial Development Revenue
IFR Industrial Facilities Revenue
LC Letter of Credit
LGAC Local Government Assistance Corp.
MBIA Municipal Bond Investors Assurance
MCF Medical Care Facility
MTA Metropolitan Transportation Authority
PAR Power Authority Revenue
PCFA Pollution Control Finance Authority
PCR Pollution Control Revenue
SCD Statewide Communities Development
SFIFP School Facilities Improvement Financing Projects
SLMA Student Loan Marketing Association
SLR Student Loan Revenue
STR Sales Tax Revenue
SWDR Solid Waste Disposal Revenue
TA Transit Authority
TFAR Transit Finance Authority Revenue
TRAN Tax Revenue Anticipation Notes
WD Water District
WDA Waste Disposal Authority
WR Water Revenue
WSUR Water & Sewer Utility Revenue
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
11
<PAGE>
MAY 31, 2000
-------------------------------------------------------------------------------
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 --
$2,493,140,657 $95,750,006,
$104,133,326, $67,234,997 and
$60,557,285, respectively) ........ $2,493,140,657 $95,750,006 $104,133,326 $67,234,997 $60,557,285
Cash ................................ 220,227 183,280 119,800 107,857 91,768
Receivable for investments
sold/called ....................... -- -- 70,000 80,000 --
Receivable for shares sold .......... 66,547,584 1,084,514 1,554,365 560,804 800,525
Interest receivable ................. 8,500,834 80,631 1,100,693 695,105 480,375
Prepaid expenses and other assets ... 80,684 12,721 11,033 2,539 2,481
--------------- ----------- ------------- ------------ ------------
Total Assets ...................... 2,568,489,986 97,111,152 106,989,217 68,681,302 61,932,434
--------------- ----------- ------------- ------------ ------------
LIABILITIES:
Investment advisory fee payable ..... 872,986 37,595 45,274 28,355 24,007
Distribution fee payable ............ 535,029 17,552 22,799 14,178 12,423
Payable for shares redeemed ......... -- -- -- -- 3,031
Dividend payable .................... 4,957,972 182,483 116,182 64,343 66,868
Accrued expenses .................... 1,093,462 45,163 52,015 25,315 27,467
--------------- ----------- ------------- ------------ ------------
Total Liabilities ................. 7,459,449 282,793 236,270 132,191 133,796
--------------- ----------- ------------- ------------ ------------
Net Assets ........................ $2,561,030,537 $96,828,359 $106,752,947 $68,549,111 $61,798,638
============== =========== ============= ============ ============
COMPOSITION OF NET ASSETS:
Par value ($.0001 per share,
10 billion shares
authorized for each Portfolio) .... $ 256,107 $ 9,685 $ 10,684 $ 6,858 $ 6,182
Paid-in-capital in excess of par .... 2,560,774,116 96,817,843 106,787,248 68,572,970 61,817,051
Accumulated net realized gain
(loss) on investments ............. 314 831 (44,985) (30,717) (24,595)
--------------- ----------- ------------- ----------- ------------
Net Assets ........................ $2,561,030,537 $96,828,359 $106,752,947 $68,549,111 $61,798,638
=============== ============ ============= ============ ============
Shares outstanding .................. 2,561,069,394 96,849,721 106,840,436 68,580,553 61,823,233
--------------- ----------- ------------- ------------ ------------
NET ASSET VALUE PER SHARE ........... $1.00 $1.00 $1.00 $1.00 $1.00
===== ===== ===== ===== =====
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
12
<PAGE>
SIX MONTHS ENDED MAY 31, 2000
-------------------------------------------------------------------------------
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 ........................ $78,333,282 $2,542,206 $2,283,748 $1,093,001 $1,059,882
----------- ---------- ---------- ---------- ----------
EXPENSES:
Investment advisory fees ........ 5,311,802 217,349 298,099 169,509 143,477
Distribution fees ............... 3,257,376 108,694 151,722 84,755 71,738
Transfer agent fees ............. 842,384 21,155 31,270 10,980 27,945
Administrative services fees .... 651,475 21,739 30,344 16,951 14,348
Shareholder servicing fees ...... 256,620 9,472 14,091 6,771 7,452
Custodian fees .................. 103,959 16,749 18,936 9,168 5,878
Directors' fees and expenses .... 96,820 4,893 6,621 3,814 3,528
Reports to shareholders ......... 79,094 3,693 3,250 1,283 1,128
Registration fees ............... 32,791 6,300 7,071 270 270
Audit and tax service fees ...... 26,794 12,116 10,854 11,240 15,065
Insurance expense ............... 7,665 1,478 1,758 1,209 1,247
Legal fees ...................... 7,347 740 780 280 205
Miscellaneous ................... 32,878 1,669 2,320 1,312 1,355
----------- ---------- ---------- ---------- ----------
Total expenses ................ 10,707,005 426,047 577,116 317,542 293,636
Less: investment advisory .....
fees waived ............. -- (74) -- -- (3,732)
expense offset .......... (419) (308) (636) (1,273) (3,360)
----------- ---------- ---------- ---------- ----------
Net expenses .................. 10,706,586 425,665 576,480 316,269 286,544
----------- ---------- ---------- ---------- ----------
Net investment income ....... 67,626,696 2,116,541 1,707,268 776,732 773,338
Net realized gain (loss)
on investments .................. (2,397) 87 -- -- --
----------- ---------- ---------- ---------- ----------
Net increase in net assets
resulting from operations ....... $67,624,299 $2,116,628 $1,707,268 $776,732 $773,338
=========== ========== ========== ======== ========
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
13
<PAGE>
-------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
----------------- --------------------
PRIMARY PORTFOLIO GOVERNMENT PORTFOLIO
----------------- --------------------
SIX MONTHS SIX MONTHS
ENDED ENDED
MAY 31, 2000 YEAR ENDED MAY 31, 2000 YEAR ENDED
(UNAUDITED) NOVEMBER 30, 1999 (UNAUDITED) NOVEMBER 30, 1999
------------- ----------------- ------------- -----------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income ............ $67,626,696 $104,396,133 $2,116,541 $3,926,262
Net realized gain (loss)
on investments ................. (2,397) 3,367 87 484
------------- -------------- ----------- ------------
Net increase in net assets
resulting from operations ... 67,624,299 104,399,500 2,116,628 1,457,800
------------- -------------- ----------- ------------
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income ............ (67,626,696) (104,396,133) (2,116,541) (3,926,262)
------------- -------------- ----------- ------------
CAPITAL SHARE TRANSACTIONS
(AT $1.00 PER SHARE):
Net proceeds from the
sale of shares ................. 12,473,176,924 16,680,730,656 245,520,786 389,179,482
Reinvestment of dividends ........ 66,379,800 103,977,710 2,056,794 3,933,944
Cost of shares redeemed ..........(12,441,825,948) (16,893,848,229) (234,772,351) (421,236,776)
------------- -------------- ----------- ------------
Net increase (decrease) in
net assets from capital
share transactions .......... 97,730,776 (109,139,863) 12,805,229 (28,123,350)
------------- -------------- ----------- ------------
Total increase (decrease) in
net assets ..................... 97,728,379 (109,136,496) 12,805,316 (28,122,866)
Net Assets:
Beginning of year ................ 2,463,302,158 2,572,438,654 84,023,043 112,145,909
------------- -------------- ----------- ------------
End of period .................... $2,561,030,537 $2,463,302,158 $96,828,359 $84,023,043
============== ============== =========== ============
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
14
<PAGE>
<TABLE>
<CAPTION>
--------------------------- ------------------------------ ----------------------------
GENERAL MUNICIPAL PORTFOLIO CALIFORNIA MUNICIPAL PORTFOLIO NEW YORK MUNICIPAL PORTFOLIO
--------------------------- ------------------------------ ----------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED ENDED ENDED
MAY 31, 2000 YEAR ENDED MAY 31, 2000 YEAR ENDED MAY 31, 2000 YEAR ENDED
(UNAUDITED) NOVEMBER 30, 1999 (UNAUDITED) NOVEMBER 30, 1999 (UNAUDITED) NOVEMBER 30, 1999
------------ ----------------- ------------ ----------------- ------------- -----------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income .......... $1,707,268 $3,029,287 $776,732 $1,362,890 $773,338 $1,457,800
Net realized gain (loss)
on investments ............... -- 6,476 -- 5 -- --
----------- ----------- ----------- ----------- ----------- -----------
Net increase in net assets
resulting from operations . 1,707,268 3,035,763 776,732 1,362,895 773,338 1,457,800
----------- ----------- ----------- ----------- ----------- -----------
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income .......... (1,707,268) (3,029,287) (776,732) (1,362,890) (773,338) (1,457,800)
----------- ----------- ----------- ----------- ----------- -----------
CAPITAL SHARE TRANSACTIONS
(AT $1.00 PER SHARE):
Net proceeds from the
sale of shares ............... 454,596,029 861,154,301 278,720,197 416,303,954 208,678,173 403,092,986
Reinvestment of dividends ...... 1,697,697 3,040,600 764,444 1,355,458 731,019 1,433,608
Cost of shares redeemed ........ (469,543,235) (916,014,947) (277,404,508) (421,583,010) (202,891,166) (433,394,287)
----------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease) in
net assets from capital
share transactions ........ (13,249,509) (51,820,046) 2,080,133 (3,923,598) 6,518,026 (28,867,693)
----------- ----------- ----------- ----------- ----------- -----------
Total increase (decrease) in
net assets ................... (13,249,509) (51,813,570) 2,080,133 (3,923,593) 6,518,026 (28,867,693)
Net Assets:
Beginning of year .............. 120,002,456 171,816,026 66,468,978 70,392,571 55,280,612 84,148,305
----------- ----------- ----------- ----------- ----------- -----------
End of period .................. $106,752,947 $120,002,456 $68,549,111 $66,468,978 $61,798,638 $55,280,612
============ ============ =========== =========== =========== ===========
</TABLE>
15
<PAGE>
MAY 31, 2000
--------------------------------------------------------------------------------
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"), collectively
the "Portfolios". 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
the Portfolios 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 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.
(e) 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.
(f) EXPENSE OFFSET
The Portfolios benefit 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 Portfolios.
(g) DIRECTORS' RETIREMENT PLAN
The Fund's Directors have adopted a Retirement Plan (the "Plan") . 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 six months ended May 31, 2000, Primary, Government,
General, California and New York accrued $42,160, $1,692, $2,212, $1,219 and
$1,008, respectively, in connection with the Plan.
16
<PAGE>
2. INVESTMENT ADVISORY FEE AND DISTRIBUTION FEE
(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 its 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 May 31, 2000, major industry concentrations
were: Banking--47.6%, Finance--16.7%, Sovereign--8.2%, Brokerage--4.5%, and
Diversified--2.7%. 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. ACQUISITION OF INVESTMENT ADVISER
On May 5, 2000 the general partners of PIMCO Advisors closed the transactions
contemplated by the Implementation and Merger Agreement dated as of October 31,
1999 ("Implementation Agreement"), as amended March 3, 2000, with Allianz of
America, Inc., Pacific Asset Management LLC, PIMCO Partners LLC, PIMCO Holding
LLC, PIMCO Partners, G.P., and other parties to the Implementation Agreement. As
a result of completing these transactions, PIMCO Advisors is now majority-owned
indirectly by Allianz AG, with subsidiaries of Pacific Life Insurance Company
retaining a significant minority interest. Allianz AG is a German based insurer.
Pacific Life Insurance Company is a Newport Beach, California based insurer. For
the Fund, the change of control as a result of the closing of the Implementation
Agreement resulted in the automatic termination of the current investment
advisory agreement with OpCap Advisors and the current distribution assistance
with OCC Distributors. Prior to the closing of the Implementation Agreement, the
Board of Directors and stockholders of the Fund approved new agreements with
OpCap Advisors and OCC Distributors to become effective upon the closing of the
Implementation Agreement.
17
<PAGE>
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS FOR A SHARE OUSTANDING THROUGHOUT EACH PERIOD
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INCOME FROM
OPERATIONS
---------------------------------------
Dividends to
Net Asset Net Shareholders
Value, Net Realized Total from Net
Beginning Investment Gain (Loss) Income from Investment
of Year Income on Investments Operations Income
PRIMARY PORTFOLIO
<S> <C> <C> <C> <C> <C>
SIX MONTHS ENDED MAY 31, 2000* $1.00 $0.03 $(0.00) $0.03 $(0.03)
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)
<CAPTION>
GOVERNMENT PORTFOLIO
<S> <C> <C> <C> <C> <C>
SIX MONTHS ENDED MAY 31, 2000* $1.00 $0.02 $0.00 $0.02 $(0.02)
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 0.04 (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
End of Total Period Investment
Period Return (1) (millions) Expenses (2) Income
PRIMARY PORTFOLIO
<S> <C> <C> <C> <C> <C>
SIX MONTHS ENDED MAY 31, 2000* $1.00 2.62% $2,561.0 0.82%(3) 5.19%(3)
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%
<CAPTION>
GOVERNMENT PORTFOLIO
<S> <C> <C> <C> <C> <C>
SIX MONTHS ENDED MAY 31, 2000* $1.00 2.45% $ 96.8 0.98%(3) 4.87%(3)
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%(4) 4.53%(4)
NOVEMBER 30, 1997 1.00 4.60% 100.0 0.98%(4) 4.51%(4)
NOVEMBER 30, 1996 1.00 4.51% 101.1 1.00% 4.41%
NOVEMBER 30, 1995 1.00 5.02% 108.6 1.00%(4) 4.91%(4)
</TABLE>
---------------------------------------------------
* UNAUDITED
(1) ASSUMES REINVESTMENT OF ALL DIVIDENDS. TOTAL RETURN FOR A PERIOD OF LESS
THAN ONE YEAR IS NOT ANNUALIZED.
(2) INCLUSIVE OF EXPENSES OFFSET BY EARNINGS CREDITS (SEE NOTE 1f IN NOTES TO
FINANCIAL STATEMENTS).
(3) ANNUALIZED
(4) DURING THE YEARS INDICATED ABOVE, THE INVESTMENT ADVISER WAIVED A PORTION
OF ITS FEES. IF SUCH WAIVERS HAD NOT BEEN IN EFFECT, THE RATIOS OF 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, AND FOR THE YEAR
ENDED NOVEMBER 30, 1998, 0.99% AND 4.50%, RESPECTIVELY FOR THE YEAR ENDED
NOVEMBER 30, 1997, AND 1.02% AND 4.89%, RESPECTIVELY, FOR THE YEAR ENDED
NOVEMBER 30, 1995.
18
<PAGE>
<TABLE>
<CAPTION>
INCOME FROM
OPERATIONS
---------------------------------------
Dividends to
Net Asset Net Shareholders
Value, Net Realized Total from Net
Beginning Investment Gain (Loss) Income from Investment
of Year Income on Investments Operations Income
GENERAL MUNICIPAL PORTFOLIO
<S> <C> <C> <C> <C> <C>
SIX MONTHS ENDED MAY 31, 2000* $1.00 $0.01 -- $0.01 $(0.01)
YEAR ENDED: NOVEMBER 30, 1999 1.00 0.02 $(0.00) 0.02 (0.02)
NOVEMBER 30, 1998 1.00 0.03 (0.00) 0.03 (0.03)
NOVEMBER 30, 1997 1.00 0.03 (0.00) 0.03 (0.03)
NOVEMBER 30, 1996 1.00 0.03 0.00 0.03 (0.03)
NOVEMBER 30, 1995 1.00 0.03 0.00 0.03 (0.03)
<CAPTION>
CALIFORNIA MUNICIPAL PORTFOLIO
<S> <C> <C> <C> <C> <C>
SIX MONTHS ENDED MAY 31, 2000* $1.00 $0.01 -- $0.01 $(0.01)
YEAR ENDED: NOVEMBER 30, 1999 1.00 0.02 -- 0.02 (0.02)
NOVEMBER 30, 1998 1.00 0.02 -- 0.02 (0.02)
NOVEMBER 30, 1997 1.00 0.03 $(0.00) 0.03 (0.03)
NOVEMBER 30, 1996 1.00 0.02 -- 0.02 (0.02)
NOVEMBER 30, 1995 1.00 0.03 (0.01) 0.02 (0.03)
<CAPTION>
NEW YORK MUNICIPAL PORTFOLIO
<S> <C> <C> <C> <C> <C>
SIX MONTHS ENDED MAY 31, 2000* $1.00 $0.01 $0.00 $0.01 $(0.01)
YEAR ENDED: NOVEMBER 30, 1999 1.00 0.02 0.00 0.02 (0.02)
NOVEMBER 30, 1998 1.00 0.03 -- 0.03 (0.03)
NOVEMBER 30, 1997 1.00 0.03 (0.00) 0.03 (0.03)
NOVEMBER 30, 1996 1.00 0.03 -- 0.03 (0.03)
NOVEMBER 30, 1995 1.00 0.03 0.00 0.03 (0.03)
<CAPTION>
RATIOS TO
AVERAGE
NET ASSETS
-------------------------
Net Asset
Capital Value, End of Net
Contribution End of Total Period Investment
by Adviser Period Return (1) (millions) Expenses (2) Income
GENERAL MUNICIPAL PORTFOLIO
<S> <C> <C> <C> <C> <C> <C>
SIX MONTHS ENDED MAY 31, 2000* -- $1.00 1.42% $106.8 0.95%(3) 2.81%(3)
YEAR ENDED: NOVEMBER 30, 1999 -- 1.00 2.29% 120.0 0.93% 2.26%
NOVEMBER 30, 1998 -- 1.00 2.66% 171.8 0.92% 2.62%
NOVEMBER 30, 1997 -- 1.00 2.74% 137.0 0.96% 2.70%
NOVEMBER 30, 1996 -- 1.00 2.56% 122.3 0.99% 2.53%
NOVEMBER 30, 1995 -- 1.00 3.11% 116.0 0.93%(4) 3.07%(4)
<CAPTION>
CALIFORNIA MUNICIPAL PORTFOLIO
<S> <C> <C> <C> <C> <C> <C>
SIX MONTHS ENDED MAY 31, 2000* -- $1.00 1.15% $68.5 0.93%(3) 2.29%(3)
YEAR ENDED: NOVEMBER 30, 1999 -- 1.00 2.06% 66.5 0.91% 2.03%
NOVEMBER 30, 1998 -- 1.00 2.39% 70.4 0.95% 2.36%
NOVEMBER 30, 1997 -- 1.00 2.68% 55.7 0.90%(5) 2.64%(5)
NOVEMBER 30, 1996 -- 1.00 2.42% 53.4 0.85%(5) 2.42%(5)
NOVEMBER 30, 1995 $0.01 1.00 3.10% 75.9 0.82%(5) 3.05%(5)
<CAPTION>
NEW YORK MUNICIPAL PORTFOLIO
<S> <C> <C> <C> <C> <C> <C>
SIX MONTHS ENDED MAY 31, 2000* -- $1.00 1.36% $61.8 1.01%(3)(6) 2.69%(3)(6)
YEAR ENDED: NOVEMBER 30, 1999 -- 1.00 2.16% 55.3 0.96% 2.11%
NOVEMBER 30, 1998 -- 1.00 2.50% 84.1 0.98% 2.46%
NOVEMBER 30, 1997 -- 1.00 2.66% 73.2 0.98%(6) 2.63%(6)
NOVEMBER 30, 1996 -- 1.00 2.50% 60.0 0.97%(6) 2.45%(6)
NOVEMBER 30, 1995 -- 1.00 3.07% 52.3 0.79%(6) 3.02%(6)
</TABLE>
---------------------------------------------------
* UNAUDITED
(1) ASSUMES REINVESTMENT OF ALL DIVIDENDS. TOTAL RETURN FOR A PERIOD OF LESS
THAN ONE YEAR IS NOT ANNUALIZED.
(2) INCLUSIVE OF EXPENSES OFFSET BY EARNINGS CREDITS (SEE NOTE 1f IN NOTES TO
FINANCIAL STATEMENTS).
(3) ANNUALIZED
(4) DURING THE YEARS INDICATED ABOVE, THE INVESTMENT ADVISER WAIVED A PORTION
OF ITS FEES. IF SUCH WAIVERS HAD NOT BEEN IN EFFECT, THE RATIO OF EXPENSES
TO AVERAGE NET ASSETS AND THE RATIO OF NET INVESTMENT INCOME TO AVERAGE NET
ASSETS WOULD HAVE BEEN 1.02% AND 2.98%, RESPECTIVELY, FOR THE YEAR ENDED
NOVEMBER 30, 1995.
(5) DURING THE YEARS INDICATED ABOVE, THE INVESTMENT ADVISER WAIVED A PORTION
OF ITS FEES. IF SUCH WAIVERS HAD NOT BEEN IN EFFECT, THE RATIOS OF 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.
(6) DURING THE PERIODS INDICATED ABOVE, THE INVESTMENT ADVISER WAIVED A PORTION
OF ITS FEES. IF SUCH WAIVERS HAD NOT BEEN IN EFFECT, THE RATIOS OF EXPENSES
TO AVERAGE NET ASSETS AND THE RATIOS OF NET INVESTMENT INCOME TO AVERAGE
NET ASSETS WOULD HAVE BEEN 1.02% AND 2.68%, RESPECTIVELY, FOR THE SIX
MONTHS ENDED MAY 31, 2000, 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.
19
<PAGE>
--------------------------------------------------------------------------------
SPECIAL MEETING OF SHAREHOLDERS
--------------------------------------------------------------------------------
The Fund held a special meeting of shareholders on March 10, 2000. Shareholders
voted to:
1) approve a new investment advisory agreement between OpCap Advisors and
the Fund;
2) approve the continuance of the Distribution Assistance and
Administrative Services Plan upon consumation of the Allianz acquistion;
3) elect V. Lee Barnes, Paul Y. Clinton, Thomas W. Courtney, Lacy B.
Herrmann, Joseph M. La Motta and Theodore Mason as directors of the Fund;
and,
4) ratifiy the appointment of PricewaterhouseCoopers LLP as independent
accountants for the fiscal year ending November 30, 2000.
The resulting vote count for each proposal is indicated below.
1. APPROVAL OF NEW INVESTMENT ADVISORY AGREEMENT BETWEEN OPCAP ADVISORS AND THE
FUND:
<TABLE>
<CAPTION>
Withhold
Affirmative Against Authority
----------- ------- ---------
<S> <C> <C> <C>
Primary 2,487,605,920 9,815,815 20,517,634
Government 68,182,374 831,053 1,349,998
General 125,263,984 111,045 649,798
California 66,094,019 97,014 15,915
New York 54,759,500 378,450 94,991
<CAPTION>
2. APPROVAL OF CONTINUANCE OF DISTRIBUTION ASSISTANCE AND ADMINISTRATIVE
SERVICES PLAN:
<S> <C> <C> <C>
Primary 2,476,902,556 16,524,366 24,512,447
Government 68,413,907 817,649 1,131,869
General 125,125,333 284,122 615,372
California 65,952,632 238,015 16,301
New York 53,788,018 1,386,032 58,891
3. ELECTION OF DIRECTORS:
<CAPTION>
V. LEE BARNES
<S> <C> <C> <C>
Primary 2,510,970,151 -- 6,969,218
Government 69,555,630 -- 807,795
General 125,912,580 -- 112,247
California 66,122,539 -- 84,409
New York 54,941,082 -- 291,859
<CAPTION>
PAUL Y. CLINTON
<S> <C> <C> <C>
Primary 2,507,944,456 -- 9,994,913
Government 69,555,630 -- 807,795
General 125,912,580 -- 112,247
California 66,122,539 -- 84,409
New York 54,940,915 -- 292,026
<CAPTION>
THOMAS W. COURTNEY
<S> <C> <C> <C>
Primary 2,508,673,092 -- 9,266,277
Government 69,555,630 -- 807,795
General 125,912,580 -- 112,247
California 66,122,539 -- 84,409
New York 54,940,915 -- 292,026
</TABLE>
20
<PAGE>
<TABLE>
<CAPTION>
Withhold
Affirmative Against Authority
----------- ------- ---------
LACY B. HERRMANN
<S> <C> <C> <C>
Primary 2,507,188,081 -- 10,751,288
Government 69,555,630 -- 807,795
General 125,912,580 -- 112,247
California 66,122,539 -- 84,409
New York 54,940,915 -- 292,026
<CAPTION>
JOSEPH M. LA MOTTA
<S> <C> <C> <C>
Primary 2,510,428,170 -- 7,511,199
Government 69,555,630 -- 807,795
General 125,912,580 -- 112,247
California 66,122,539 -- 84,409
New York 54,940,915 -- 292,026
<CAPTION>
THEODORE T. MASON
<S> <C> <C> <C>
Primary 2,508,753,460 -- 9,185,909
Government 69,555,630 -- 807,795
General 125,912,580 -- 112,247
California 66,122,539 -- 84,409
New York 54,940,915 -- 292,026
<CAPTION>
4. RATIFICATION OF THE APPOINTMENT OF PRICEWATERHOUSECOOPERS LLP AS THE FUND'S
INDEPENDENT ACCOUNTANTS FOR THE FISCAL YEAR ENDING NOVEMBER 30, 2000.
<S> <C> <C> <C>
Primary 2,498,071,690 4,229,483 15,638,196
Government 70,049,090 55,734 258,601
General 125,370,557 110,082 544,188
California 66,098,521 75,815 32,612
New York 54,977,743 213,544 41,654
</TABLE>
21
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