QUEST FOR VALUE ACCUMULATION TRUST, N-30D, 1996-02-27

QUEST FOR VALUE ACCUMULATION TRUST
N-30D, 1996-02-27

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<PAGE> 1

QUEST FOR VALUE ACCUMULATION TRUST
MANAGED BY

LOGO

We at OpCap Advisors are pleased to report on the investment activities and
results of the portfolios in the Quest for Value Accumulation Trust for 1995, a
very favorable year for investors. Prices of stocks and bonds rose sharply
during the year in an environment of declining interest rates, low inflation,
strong corporate profits and slow economic growth.

OUR VALUE-BASED INVESTMENT PHILOSOPHY

The portfolios in the Quest for Value Accumulation Trust are intended for
the long-term investor who seeks to preserve capital and make it grow. Our
objective in managing the portfolios is to deliver above-average returns with
below-average risk.

Our philosophy in buying common stocks is to purchase quality companies at
reasonable prices. We believe the single most important determinant of whether a
stock will increase in value is the rate of return on invested capital within
the company. In our view, companies with high returns can compound their capital
and increase their value for extended periods. Therefore, we look for companies
with above-average returns where those returns are protected by strong
competitive positions. Moreover, we want these companies to use their cash flow
to benefit shareholders -- through stock buybacks or astute acquisitions, for
instance. We stick with good companies until their value is reflected in the
stock price, or until we find companies that offer even better value.

Similarly, we are value investors in the bond market. We seek to preserve
capital and maximize income by looking for sector, maturity and quality groups
that provide the highest yield at the lowest price with the least amount of
risk. We avoid such techniques as interest rate forecasting and market timing,
which in our view tend to increase volatility and add to risk.

NAME CHANGES

In November, the Trust's investment adviser changed its name from Quest for
Value Advisors to OpCap Advisors. Effective May 1, 1996, the name of the
Accumulation Trust will become OCC Accumulation Trust. These name changes will
link both the Trust and its adviser more closely to Oppenheimer Capital, the
adviser's parent. OpCap is short for Oppenheimer Capital, while OCC is the New
York Stock Exchange symbol of the publicly traded partnership which owns a
majority interest in Oppenheimer Capital. Most important of all, these name
changes have no effect on the investment philosophy or structure of the
Accumulation Trust. The same professionals continue to manage the portfolios of
the Trust, employing the same value philosophy and backed by the same
organization and support staff.
<PAGE> 2

EQUITY PORTFOLIO

The Equity Portfolio continued its excellent performance in 1995. The
Portfolio invests primarily in the common stocks of large and mid-sized
companies. Its total return of 38.9% in 1995 exceeded the total return of 37.6%
with dividends included for the Standard & Poor's 500 Index (S&P 500), an
unmanaged index of 500 of the largest corporations weighted by market
capitalization. This performance was sixth best among the 39 capital
appreciation funds in Lipper's Variable Insurance Products Performance Analysis
Service Report. The Portfolio's 1995 performance included a total return of
12.5% in the second fiscal half, compared with 14.4% for the S&P 500.

For the five years ended December 31, 1995, the Portfolio's average annual
total return of 19.2%* exceeded the 16.6% average annual return of the S&P 500
Index. The Portfolio's five-year performance ranked 10th among the 21 portfolios
in the Lipper capital appreciation category. The Portfolio's average annual
total return since its inception on August 1, 1988 has been 15.6%*, compared
with 15.2% for the S&P 500. Returns for the Portfolio take into account expenses
incurred by the Portfolio, but not other charges imposed by the Variable
Accounts.

The Portfolio achieved above-market returns in 1995 despite a conservative
investment posture, including a sizable cash position, and without making
significant investments in technology stocks. The Portfolio benefited from good
stock selection, as a number of its major positions outperformed the S&P 500.
The five stocks which contributed most to the Portfolio's performance in 1995
were EXEL Ltd., Federal Home Loan Mortgage Corp. (Freddie Mac), Intel Corp.,
Citicorp and McDonnell Douglas Corp.

The Portfolio's performance was helped also by its substantial holdings of
financial service company stocks, which were among the market leaders for the
year. Such securities, representing 32% of the Portfolio's net assets as of
December 31, 1995, include an eclectic group of specialty insurers and other
financial service companies. Most have been investments of long standing that
appeared undervalued to us regardless of the interest rate environment, although
the decline in rates in 1995 did help fuel their market performance.

As of December 31, 1995, the Portfolio's net assets were allocated 82% to
equities and 21% to cash and cash equivalents, with 3% in liabilities in excess
of other assets. Major portfolio changes during the second half included new
positions in the common stocks of Prudential Reinsurance Holdings, Inc., Shaw
Industries, Inc. and Varity Corp. Positions that were eliminated included Mellon
Bank Corp., Morgan Stanley Group, Inc., Premark International, Inc. and Sara Lee
Corp.

The Portfolio owned the common stocks of 41 companies as of December 31,
1995. Major industry positions were in the insurance, financial services,
banking, aerospace & defense and retail sectors. The Portfolio's five largest
equity positions were Federal Home Loan Mortgage Corp. (Freddie Mac), the second
largest insurer of home mortgages in the United States; EXEL Ltd., a strongly
capitalized specialty insurance company; Citicorp, a leading bank; May
Department Stores Co., a leading retailer; and Becton, Dickinson & Co., a
worldwide producer of medical products and diagnostic test systems.
- ---------------

* Based on results of the Quest for Value Accumulation Trust and its
predecessor. On September 16, 1994, an investment company which had commenced
operations on August 1, 1988, then called Quest for Value Accumulation Trust
(the "Old Trust"), was effectively divided into two investment funds -- the Old
Trust and the present Quest for Value Accumulation Trust (the "Present
Trust") -- at which time the Present Trust commenced operations. The total net
assets of the Equity Portfolio immediately after the transaction were
$86,789,755 in the Old Trust and $3,764,598 in the Present Trust. For the
periods prior to September 16, 1994, the performance reflects the performance of
the corresponding Equity Portfolio of the Old Trust.

COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN
QUEST FOR VALUE ACCUMULATION TRUST EQUITY PORTFOLIO FROM INCEPTION (8/1/88)*
THROUGH 12/31/95 AND TOTAL RETURN ON S&P 500 INDEX+

<TABLE>
<CAPTION>
Measurement Period Equity Port- S & P 500
(Fiscal Year Covered) folio Index*
<S> <C> <C>
08/01/88 10000 10000
12/31/88 10190 10383
12/31/89 12500 13673
12/31/90 12223 13249
12/31/91 16038 17285
12/31/92 18909 18602
12/31/93 20393 20475
12/31/94 21171 20746
12/31/95 29396 28542
</TABLE>

Past performance is not predictive of future performance.
Assumes reinvestment of all dividends and distributions.
+with dividends.
The performance graph does not reflect charges imposed by the Variable Accounts.
<PAGE> 3

QUEST FOR VALUE ACCUMULATION TRUST
EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS

DECEMBER 31, 1995

<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- --------- ----------
<C> <S> <C>
SHORT-TERM CORPORATE NOTES - 21.2%
AUTOMOTIVE - 1.5%
$ 130,000 Ford Motor Credit Co., 5.65%, 1/31/96.................................. $ 129,388
----------
BANKING - 1.1%
100,000 Norwest Financial, Inc., 5.62%, 1/22/96................................ 99,672
----------
INSURANCE - 3.3%
300,000 Prudential Funding Corp., 5.81%, 1/9/96................................ 299,613
----------
MACHINERY/ENGINEERING - 2.2%
200,000 Deere (John) Capital Corp., 5.73%, 1/9/96.............................. 199,745
----------
MISCELLANEOUS FINANCIAL SERVICES - 8.7%
380,000 Beneficial Corp., 5.77%, 1/16/96....................................... 379,086
410,000 Household Finance Corp., 5.75%, 1/10/96................................ 409,411
----------
788,497
----------
TECHNOLOGY - 4.4%
400,000 IBM Credit Corp., 5.73%, 1/3/96........................................ 399,873
----------
Total Short-Term Corporate Notes (amortized cost-$1,916,788)........... $1,916,788
----------
SHARES
--------
COMMON STOCKS - 81.6%
AEROSPACE/DEFENSE - 5.4%
3,380 AlliedSignal, Inc...................................................... $ 160,550
9,000 Coltec Industries, Inc................................................. 104,625
2,447 McDonnell Douglas Corp. ............................................... 225,124
----------
490,299
----------
BANKING - 6.2%
4,656 Citicorp............................................................... 313,116
1,800 First Interstate Bancorp............................................... 245,700
----------
558,816
----------
CHEMICALS - 4.9%
2,000 du Pont (E.I.) de Nemours & Co. ....................................... 139,750
3,198 Hercules, Inc.......................................................... 180,287
982 Monsanto Co............................................................ 120,295
----------
440,332
----------
CONGLOMERATES - 1.7%
2,156 General Electric Co. .................................................. 155,232
----------
CONSUMER PRODUCTS - 4.6%
1,922 Avon Products, Inc..................................................... 144,871
3,370 Hasbro, Inc. .......................................................... 104,470
5,475 Mattel, Inc............................................................ 168,356
----------
417,697
----------
</TABLE>
<PAGE> 4

QUEST FOR VALUE ACCUMULATION TRUST
EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)

DECEMBER 31, 1995

<TABLE>
<CAPTION>
SHARES VALUE
- --------- ----------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
CONTAINERS - 2.1%
4,298 Temple-Inland, Inc..................................................... $ 189,649
----------
DRUGS & MEDICAL PRODUCTS - 4.3%
4,021 Becton, Dickinson & Co. ............................................... 301,575
874 Warner-Lambert Co...................................................... 84,887
----------
386,462
----------
ELECTRONICS - 1.9%
4,038 Arrow Electronics, Inc.*............................................... 174,139
----------
ENERGY - 1.9%
2,996 Triton Energy Corp.*................................................... 171,896
----------
HEALTH & HOSPITALS - 3.8%
3,500 Columbia / HCA Healthcare Corp. ....................................... 177,625
8,000 Tenet Healthcare Corp.*................................................ 166,000
----------
343,625
----------
INSURANCE - 18.4%
6,500 Ace Ltd. .............................................................. 258,375
3,248 AFLAC, Inc. ........................................................... 140,882
2,262 American International Group, Inc. .................................... 209,235
6,726 EXEL Ltd............................................................... 410,286
4,579 Progressive Corp. (Ohio)............................................... 223,799
10,000 Prudential Reinsurance Holdings, Inc. ................................. 233,750
874 Transamerica Corp...................................................... 63,693
10 Transport Holdings, Inc.*.............................................. 407
2,000 Travelers, Inc. ....................................................... 125,750
----------
1,666,177
----------
MANUFACTURING - 4.2%
8,000 Shaw Industries, Inc................................................... 118,000
7,000 Varity Corp.*.......................................................... 259,875
----------
377,875
----------
METALS & MINING - .7%
2,145 Freeport McMoRan Copper & Gold (Class B)............................... 60,328
----------
MISCELLANEOUS FINANCIAL SERVICES - 7.7%
3,245 American Express Co.................................................... 134,262
5,912 Countrywide Credit Industries, Inc..................................... 128,586
5,155 Federal Home Loan Mortgage Corp........................................ 430,442
----------
693,290
----------
PAPER PRODUCTS - 1.4%
3,100 Champion International Corp. .......................................... 130,200
----------
</TABLE>
<PAGE> 5

QUEST FOR VALUE ACCUMULATION TRUST
EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)

DECEMBER 31, 1995

<TABLE>
<CAPTION>
SHARES VALUE
- --------- ----------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
RAILROADS - 1.9%
2,100 Norfolk Southern Corp.................................................. $ 166,688
----------
RETAIL - 5.0%
7,388 May Department Stores Co............................................... 312,143
3,000 Penney (J.C.) Co., Inc................................................. 142,875
----------
455,018
----------
TECHNOLOGY - 1.9%
3,046 Intel Corp. ........................................................... 172,860
----------
TELECOMMUNICATION - 1.8%
4,000 Sprint Corp. .......................................................... 159,500
----------
TRANSPORTATION - 1.8%
3,600 CSX Corp. ............................................................. 164,250
----------
Total Common Stocks (cost-$5,850,568).................................. $7,374,333
----------
Total Investments (A) (cost-$7,767,356)....................... 102.8% $9,291,121
Other Liabilities in Excess of Other Assets................... (2.8) (255,139)
----- ----------
Total Net Assets.............................................. 100.0% $9,035,982
===== =========
</TABLE>

- ---------------

* Non-income producing security.

(A) Aggregate gross unrealized appreciation for securities in which there is an
excess of value over tax cost is $1,637,034, aggregate gross unrealized
depreciation for securities in which there is an excess of tax cost over
value is $113,269 and net unrealized appreciation for Federal income tax
purpose is $1,523,765. Federal income tax basis of portfolio securities is
substantially the same as for financial reporting purposes.

See accompanying notes to financial statements.
<PAGE> 6

QUEST FOR VALUE ACCUMULATION TRUST
EQUITY PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES

DECEMBER 31, 1995

<TABLE>
<CAPTION>
<S> <C>
ASSETS
Investments, at value (cost -- $7,767,356)....................................... $9,291,121
Cash............................................................................. 858
Receivable from fund shares sold................................................. 1,533
Dividends receivable............................................................. 7,702
Receivable from Adviser.......................................................... 38
Other assets..................................................................... 125
----------
Total Assets................................................................... 9,301,377
----------
LIABILITIES
Payable for investments purchased................................................ 250,000
Other payables and accrued expenses.............................................. 15,395
----------
Total Liabilities.............................................................. 265,395
----------
NET ASSETS
Par value ($.01 per share)....................................................... 3,607
Paid-in-surplus.................................................................. 7,172,859
Accumulated undistributed net investment income.................................. 111,781
Accumulated undistributed net realized gain on investments....................... 223,970
Net unrealized appreciation on investments....................................... 1,523,765
----------
Total Net Assets............................................................... $9,035,982
==========
Fund shares outstanding.......................................................... 360,689
----------
Net asset value per share........................................................ $ 25.05
==========
</TABLE>

See accompanying notes to financial statements.
<PAGE> 7

QUEST FOR VALUE ACCUMULATION TRUST
EQUITY PORTFOLIO
STATEMENT OF OPERATIONS

FOR THE YEAR ENDED DECEMBER 31, 1995

<TABLE>
<S> <C>
INVESTMENT INCOME
Dividends...................................................................... $ 93,124
Interest....................................................................... 64,858
----------
Total investment income..................................................... 157,982
----------
OPERATING EXPENSES
Investment advisory fee (note 2a).............................................. 38,504
Custodian fees................................................................. 14,481
Auditing, consulting and tax return preparation fees........................... 10,044
Transfer and dividend disbursing agent fees.................................... 9,103
Legal fees..................................................................... 2,714
Reports and notices to shareholders............................................ 1,692
Miscellaneous.................................................................. 4,408
----------
Total operating expenses.................................................... 80,946
Less: Investment advisory fee waived (note 2a).............................. (34,745)
----------
Net operating expenses................................................. 46,201
----------
Net investment income.................................................. 111,781
----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS - NET
Net realized gain on investments................................................. 233,302
Net change in unrealized appreciation (depreciation) on investments.............. 1,628,793
----------
Net realized gain and change in unrealized appreciation (depreciation)
on investments......................................................... 1,862,095
----------
Net increase in net assets resulting from operations................... $1,973,876
==========
</TABLE>

See accompanying notes to financial statements.
<PAGE> 8

QUEST FOR VALUE ACCUMULATION TRUST
EQUITY PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
YEAR ENDED SEPTEMBER 16, 1994(1)
DECEMBER 31, 1995 TO DECEMBER 31, 1994
----------------- ---------------------
<S> <C> <C>
OPERATIONS
Net investment income.................................... $ 111,781 $ 20,888
Net realized gain (loss) on investments.................. 233,302 (9,332)
Net change in unrealized appreciation (depreciation) on
investments............................................ 1,628,793 (105,028)
---------- ----------
Net increase (decrease) in net assets resulting from
operations........................................ 1,973,876 (93,472)
---------- ----------
DIVIDENDS TO SHAREHOLDERS
Net investment income.................................... (20,888) --
---------- ----------
FUND SHARE TRANSACTIONS
Net proceeds from sales.................................. 3,630,236 677,749
Net value of securities received (note 1)................ -- 3,764,598
Reinvestment of dividends................................ 20,888 --
Cost of shares redeemed.................................. (849,386) (67,619)
---------- ----------
Net increase in net assets from fund share
transactions...................................... 2,801,738 4,374,728
---------- ----------
Total increase in net assets................... 4,754,726 4,281,256
NET ASSETS
Beginning of period...................................... 4,281,256 0
---------- ----------
End of period (including undistributed net investment
income of $111,781 and $20,888, respectively).......... $ 9,035,982 $ 4,281,256
========== ==========
SHARES ISSUED AND REDEEMED
Issued................................................... 161,702 37,272
Issued in exchange for securities (note 1)............... -- 202,725
Issued in reinvestment of dividends...................... 1,074 --
Redeemed................................................. (38,368) (3,716)
---------- ----------
Net increase........................................ 124,408 236,281
========== ==========
</TABLE>

- ---------------

(1) Commencement of operations.

See accompanying notes to financial statements.
<PAGE> 9

QUEST FOR VALUE ACCUMULATION TRUST
EQUITY PORTFOLIO
NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 1995

(1) ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

Quest for Value Accumulation Trust (the "Trust") was organized on May 12,
1994 as a Massachusetts business trust and is registered under the Investment
Company Act of 1940, as amended, as a diversified, open-end management
investment company. The Trust is authorized to issue an unlimited number of
seven classes of shares of beneficial interest at $.01 par value: the Equity
Portfolio, the Small Cap Portfolio, the Global Equity Portfolio, the Managed
Portfolio, the Bond Portfolio, the U. S. Government Income Portfolio and the
Money Market Portfolio. OpCap Advisors (formerly called Quest for Value
Advisors; the "Adviser"), a majority-owned (99%) subsidiary of Oppenheimer
Capital, serves as the Trust's investment adviser. The Equity Portfolio (the
"Portfolio"), one of the Trust's seven portfolios had no operations until
September 16, 1994, when the Enterprise Accumulation Trust Equity Portfolio
(formerly known as Quest for Value Accumulation Trust Equity Portfolio),
distributed cash and securities with an aggregate market value of $3,764,598 in
exchange for 202,725 shares of the Portfolio. The following is a summary of
significant accounting policies consistently followed by the Portfolio in the
preparation of its financial statements:

(A) VALUATION OF INVESTMENTS

Investment securities, other than debt securities, listed on a national
exchange or traded in the over-the-counter National Market System are valued
each business day at the last reported sale price; if there are no such reported
sales, the securities are valued at their last quoted bid price. Other
securities traded over-the-counter and not part of the National Market System
are valued at the last quoted bid price. Investment debt securities (other than
short-term obligations) are valued each business day by an independent pricing
service approved by the Board of Trustees. Investments are valued by the pricing
service using methods which include current market quotations from a major
market maker in the securities and trader-reviewed "matrix" prices. Short-term
debt securities having a remaining maturity of more than sixty days are valued
on a "marked-to-market" basis, that is, at prices based upon market quotations
for securities of similar type, yield, quality and maturity. Short-term debt
securities having a remaining maturity of sixty days or less are valued at
amortized cost, which approximates market value. Any securities or other assets
for which market quotations are not readily available are valued at their fair
value as determined in good faith by the Board of Trustees. The ability of
issuers of debt instruments to meet their obligations may be affected by
economic developments in a specific industry or region.

(B) FEDERAL INCOME TAXES

It is the Portfolio's policy to comply with the requirements of the
Internal Revenue Code applicable to regulated investment companies and to
distribute substantially all of its taxable income to shareholders; accordingly,
no Federal income tax provision is required.

Security transactions are accounted for on the trade date. In determining
the gain or loss from the sale of securities, the cost of securities sold has
been determined on the basis of identified cost. Dividend income is recorded on
the ex-dividend date and interest income is accrued as earned. Discounts or
premiums on debt securities purchased are accreted or amortized to interest
income over the lives of the respective securities.

(D) DIVIDENDS AND DISTRIBUTIONS

Dividends and distributions to shareholders from net investment income and
net realized capital gains, if any, are declared and paid at least annually.
<PAGE> 10

QUEST FOR VALUE ACCUMULATION TRUST
EQUITY PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 1995

(1) ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(D) DIVIDENDS AND DISTRIBUTIONS (CONTINUED)
The Portfolio records dividends and distributions to its shareholders on
the ex-dividend date. The amount of dividends and distributions from net
investment income and net realized capital gains are determined in accordance
with Federal income tax regulations, which may differ from generally accepted
accounting principles. These "book-tax" differences are either considered
temporary or permanent in nature. To the extent these differences are permanent
in nature, such amounts are reclassified within the capital accounts based on
their Federal tax-basis treatment: temporary differences do not require
reclassification. Dividends and distributions which exceed net investment income
and net realized capital gains for financial reporting purposes but not for tax
purposes are reported as dividends in excess of net investment income or
distributions in excess of net realized capital gains, respectively. To the
extent distributions exceed current and accumulated earnings and profits for
Federal income tax purposes, they are reported as distributions of paid-
in-surplus or tax return of capital. At December 31, 1995, the Portfolio did not
have any permanent book-tax differences.

(E) ALLOCATION OF EXPENSES

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 the applicable portfolios of
the Trust or another reasonable basis.

(F) USE OF ESTIMATES

The preparation of 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. Actual results could differ from those estimates.

(2) INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES

(a) The investment advisory fee is accrued daily and payable monthly to the
Adviser, and is computed as a percentage of the Portfolio's net assets as of the
close of business each day at the annual rate of .60%.

The Adviser has agreed to waive that portion of the advisory fee and to
reimburse any necessary expenses to limit operating expenses of the Portfolio to
.72% of average daily net assets on an annual basis through at least December
31, 1995.

(b) Total brokerage commissions paid by the Portfolio for the year ended
December 31, 1995, amounted to $6,942, of which Oppenheimer & Co., Inc., an
affiliate of the Adviser, received $3,800.

(3) PURCHASES AND SALES OF SECURITIES

For the year ended December 31, 1995, purchases and sales of investment
securities, other than short-term securities were $3,641,204 and $1,633,047,
respectively.

(4) CAPITAL LOSS CARRYFORWARD

For the fiscal year ended December 31, 1995, the Portfolio will utilize
$9,332 of net capital loss carryforwards.
<PAGE> 11

QUEST FOR VALUE ACCUMULATION TRUST
EQUITY PORTFOLIO
FINANCIAL HIGHLIGHTS

FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD:

<TABLE>
<CAPTION>
YEAR ENDED SEPTEMBER 16, 1994(1)
DECEMBER 31, 1995 TO DECEMBER 31, 1994
----------------- ---------------------
<S> <C> <C>
Net asset value, beginning of period..................... $ 18.12 $ 18.57
Income from investment operations:
Net investment income.................................... 0.31 0.09
Net realized and unrealized gain (loss) on investments... 6.71 (0.54)
---------- ----------
Total from investment operations....................... 7.02 (0.45)
---------- ----------
Dividends to shareholders:
Dividends to shareholders from net investment income..... (0.09) --
---------- ----------
Net asset value, end of period........................... $ 25.05 $ 18.12
========== ==========
Total return(2).......................................... 38.9% (2.4%)
========== ==========
Net assets, end of period................................ $ 9,035,982 $ 4,281,256
---------- ----------
Ratio of net operating expenses to average net
assets(5).............................................. 0.72%(4) 0.72%(3)
---------- ----------
Ratio of net investment income to average net
assets(5).............................................. 1.74%(4) 1.80%(3)
---------- ----------
Portfolio turnover....................................... 31% 6%
---------- ----------
</TABLE>

- ---------------

(1) Commencement of operations.

(2) Assumes reinvestment of all dividends and distributions.

(3) Annualized.

(4) Average net assets for the year ended December 31, 1995 were $6,417,381.

(5) During the periods presented above, the Adviser waived a portion or all of
its fees and reimbursed the Portfolio for a portion of its operating
expenses. If such waivers and reimbursements had not been in effect, the
ratio of net operating expenses to average net assets would have been 1.26%
and 2.09% and the ratio of net investment income to average net assets would
have been 1.20% and 0.43%, respectively
<PAGE> 12

REPORT OF INDEPENDENT ACCOUNTANTS

TO THE SHAREHOLDERS AND TRUSTEES OF
QUEST FOR VALUE ACCUMULATION TRUST -- EQUITY PORTFOLIO

In our opinion, the accompanying statement of assets and liabilities,
including the schedule 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 the Equity Portfolio (one of the
portfolios constituting Quest for Value Accumulation Trust, hereafter referred
to as the "Portfolio") at December 31, 1995, the results of its operations for
the year then ended, and the changes in its net assets and the financial
highlights for the year ended December 31, 1995 and for the period September 16,
1994 (commencement of operations) through December 31, 1994, in conformity with
generally accepted accounting principles. These financial statements and
financial highlights (hereafter referred to as "financial statements") are the
responsibility of the Portfolio's management; our responsibility is to express
an opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with generally accepted
auditing standards which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at December 31, 1995 by
correspondence with the custodian and broker, provide a reasonable basis for the
opinion expressed above.

PRICE WATERHOUSE LLP
1177 Avenue of the Americas
New York, New York 10036
February 16, 1996
<PAGE> 13

SMALL CAP PORTFOLIO

The Small Cap Portfolio, which as its name implies invests primarily in the
common stocks of smaller companies, had a total return of 15.2% in 1995, below
the total return of 28.5% with dividends included for the Russell 2000 Index, a
widely followed benchmark which includes smaller capitalization stocks. The
Portfolio's performance was 25th among the 28 small company growth funds in
Lipper's Variable Insurance Products Performance Analysis Service Report. In the
1995 second half, the Portfolio provided a total return of 8.8%, compared with
12.3% for the Russell 2000.

The Portfolio underperformed the index, in large part, because it did not
own many technology or financial service company stocks, two of the small cap
market's strongest sectors in 1995. Conversely, the Portfolio was overweighted
in real estate investment trusts (REITs). Many quality REITs appear to be
significantly undervalued. However, with their defensive investment
characteristics, they did not perform well during 1995 in a rising market.

For the five years ended December 31, 1995, the Portfolio provided an
average annual total return of 19.7%*, compared with the 21.0% average annual
return for the Russell 2000 Index. The Portfolio's five-year performance was
sixth among seven funds in the Lipper small company growth fund category. From
its inception on August 1, 1988 through December 31, 1995, the Portfolio
provided an average annual total return of 14.2%*, exceeding the 12.6% annual
total return for the Russell Index. Returns for the Portfolio take into account
expenses incurred by the Portfolio, but not any of the charges imposed by the
Variable Accounts.

Technology issues are only part of the small cap universe, and an expensive
and volatile part at that. The rest of the small cap market carries valuations
that are, in many cases, quite reasonable. We are conservative investors in
small cap stocks, seeking to control volatility and generate superior returns by
purchasing quality businesses that are mispriced by the market. The Portfolio
owns a diverse group of companies distinguished by their excellent business and
financial characteristics, including high cash flow and strong competitive
positions. An example is Oak Industries, Inc., the Portfolio's largest equity
position. Oak Industries is the dominant supplier of coaxial cable connectors to
the cable television industry and is benefiting from systems upgrading
throughout the industry. The telecommunications bill before the Congress, if
passed in its current form, should further boost Oak's business by promoting
increased competition in the delivery of telecommunications services to the
home. Moreover, international revenues account for approximately 40% of the
sales of Oak's major subsidiary, and these revenues are increasing at a rate of
about 40% a year as Oak capitalizes on the rapid growth of cable TV overseas.
Oak Industries earns a high return on capital and has increased its gross
margins from 18.7% in 1989 to 40.1% in 1995. We believe the stock is
significantly undervalued at 11 times reported earnings.

We remain disciplined and confident in our approach and continue to perform
the rigorous, in-depth analysis to identify quality businesses, such as Oak
Industries, where the value of the franchise is underpriced in the market. Our
goal is to provide above-average returns with below-average risk over time as
the market recognizes the merits of the undervalued stocks we own.

As of December 31, 1995, the Portfolio's net assets were allocated 85% to
common stocks and securities convertible into common stocks, 14% to cash and
cash equivalents, and 1% to assets in excess of liabilities. The Portfolio owned
the common stocks of 74 companies. Major industry positions were in the
manufacturing, electronics, energy, real estate and insurance sectors. The
Portfolio's five largest equity holdings were Oak Industries, Inc., with its
core business of manufacturing coaxial cable connectors for the cable television
industry; BancTec, Inc., which provides electronic systems and software for
processing financial documents and transactions; Westpoint Stevens, Inc., a
leading manufacturer of home textiles, including sheets and other bedding
products; Crane Co., which manufactures aerospace, fluid handling and controls
components and vending machines and distributes and manufactures housing-related
building products; and True North Communications, Inc., an advertising agency
holding company owning Foote, Cone & Belding Communications, Inc., one of the
largest advertising agencies in North America.
- ---------------

* Based on results of the Quest for Value Accumulation Trust and its
predecessor. On September 16, 1994, an investment company which had commenced
operations on August 1, 1988, then called Quest for Value Accumulation Trust
(the "Old Trust"), was effectively divided into two investment funds -- the Old
Trust and the present Quest for Value Accumulation Trust (the "Present
Trust") -- at which time the Present Trust commenced operations. The total net
assets of the Small Cap Portfolio immediately after the transaction were
$139,812,573 in the Old Trust and $8,129,274 in the Present Trust. For the
periods prior to September 16, 1994, the performance reflects the performance of
the corresponding Small Cap Portfolio of the Old Trust.

COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN
QUEST FOR VALUE ACCUMULATION TRUST SMALL CAP PORTFOLIO FROM INCEPTION (8/1/88)*
THROUGH 12/31/95 AND TOTAL RETURN ON RUSSELL 2000 INDEX+

<TABLE>
<CAPTION>
Measurement Period Small Cap Russell 2000
(Fiscal Year Covered) Portfolio Index
<S> <C> <C>
08/01/88 10000 10000
12/31/88 10190 9936
12/31/89 12060 11549
12/31/90 10883 9295
12/31/91 16120 13575
12/31/92 19584 16076
12/31/93 23405 19127
12/31/94 23170 18778
12/31/95 26698 24121
</TABLE>

QUEST FOR VALUE ACCUMULATION TRUST
SMALL CAP PORTFOLIO
SCHEDULE OF INVESTMENTS

DECEMBER 31, 1995

<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- --------- -----------
<C> <S> <C>
SHORT-TERM CORPORATE NOTES - 13.9%
BANKING - 3.9%
$ 625,000 Norwest Financial, Inc., 5.62%, 1/23/96............................... $ 622,853
-----------
CONGLOMERATES - 1.6%
150,000 General Electric Capital Corp., 5.76%, 1/8/96......................... 149,832
100,000 General Electric Capital Services, Inc., 5.76%, 1/8/96................ 99,888
-----------
249,720
-----------
INSURANCE - 1.2%
200,000 Prudential Funding Corp., 5.75%, 1/17/96.............................. 199,489
-----------
MACHINERY - 2.8%
Deere (John) Capital Corp.,
300,000 5.63%, 1/17/96........................................................ 299,249
150,000 5.73%, 1/4/96......................................................... 149,929
-----------
449,178
-----------
MISCELLANEOUS FINANCIAL SERVICES - 4.4%
Beneficial Corp.,
500,000 5.70%, 1/5/96......................................................... 499,683
100,000 5.76%, 1/8/96......................................................... 99,888
100,000 Household Finance Corp., 5.67%, 1/23/96............................... 99,654
-----------
699,225
-----------
Total Short-Term Corporate Notes (amortized cost-$2,220,465).......... $ 2,220,465
-----------
CORPORATE NOTES - .1%
AUTOMOTIVE - .0%
$ 2,148 Collins Industries, Inc., 8.75%, 1/11/00.............................. $ 2,005
-----------
ENERGY - .1%
15,125 Global Marine, Inc., 12.75%, 12/15/99................................. 16,713
-----------
Total Corporate Notes (cost - $18,363)................................ $ 18,718
-----------
CONVERTIBLE CORPORATE BONDS - .3%
REAL ESTATE - .3%
Security Capital Realty, Inc., 12.00%, 6/30/14(A)(B) (cost -
$ 51,487 $46,860).............................................................. $ 51,487
-----------
</TABLE>

<TABLE>
<CAPTION>
SHARES
- ---------
<C> <S> <C>
CONVERTIBLE PREFERRED STOCK - .6%
RETAIL - .1%
2,200 Family Bargain Corp. $.95 Conv. Pfd................................... $ 12,925
TRANSPORTATION - .5%
825 Interpool, Inc., 5.75%, Conv. Pfd..................................... 77,550
-----------
Total Convertible Preferred Stock (cost-$81,675)...................... $ 90,475
-----------
</TABLE>
<PAGE> 15

QUEST FOR VALUE ACCUMULATION TRUST
SMALL CAP PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)

DECEMBER 31, 1995

<TABLE>
<CAPTION>
SHARES VALUE
- --------- -----------
<C> <S> <C>
COMMON STOCKS - 83.9%
ADVERTISING - 6.2%
20,000 Katz Media Group, Inc.*............................................... $ 352,500
6,000 Omnicom Group, Inc.................................................... 223,500
22,864 True North Communications, Inc. ...................................... 422,984
-----------
998,984
-----------
AUTOMOTIVE - 1.1%
4,400 Collins Industries, Inc.*............................................. 7,150
12,000 Masland Corp. ........................................................ 168,000
-----------
175,150
-----------
BANKING - .8%
6,800 First Financial Caribbean Corp........................................ 127,500
-----------
BUILDING & CONSTRUCTION - 3.1%
9,739 D.R. Horton, Inc. .................................................... 114,433
3,000 Insituform Technologies (Class A)*.................................... 34,875
16,500 Martin Marietta Materials, Inc. ...................................... 340,313
-----------
489,621
-----------
CHEMICALS - 1.3%
6,500 OM Group, Inc......................................................... 215,312
-----------
COMPUTER SERVICES - 3.5%
25,867 BancTec, Inc.*........................................................ 478,539
3,394 Globalink, Inc.*...................................................... 22,061
2,800 Keane, Inc.*.......................................................... 61,950
-----------
562,550
-----------
CONGLOMERATES - 1.8%
12,100 Ralcorp Holdings, Inc.*............................................... 293,425
-----------
DRUGS & MEDICAL PRODUCTS - 2.8%
5,000 Dentsply International, Inc. ......................................... 200,000
5,000 Spacelabs, Inc........................................................ 143,750
4,600 Sybron International Corp.*........................................... 109,250
-----------
453,000
-----------
ELECTRICAL EQUIPMENT - 8.6%
17,200 EG & G, Inc........................................................... 417,100
11,800 Marshall Industries*.................................................. 379,075
30,920 Oak Industries, Inc. ................................................. 579,750
-----------
1,375,925
-----------
</TABLE>
<PAGE> 16

QUEST FOR VALUE ACCUMULATION TRUST
SMALL CAP PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)

DECEMBER 31, 1995

<TABLE>
<CAPTION>
SHARES VALUE
- --------- -----------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
ENERGY - 8.2%
7,948 Aquila Gas Pipeline Corp. ............................................ $ 102,330
12,600 Belden & Blake Corp.*................................................. 220,500
15,500 Global Natural Resources, Inc.*....................................... 162,750
13,000 Noble Drilling Corp.*................................................. 117,000
11,200 Petroleum Heat & Power Company, Inc. (Class A)........................ 91,000
10,100 St. Mary Land & Exploration Co........................................ 141,400
25,942 Sithe Energies, Inc.*................................................. 155,652
8,000 Tesoro Petroleum Corp.*............................................... 69,000
2,000 Triton Energy Corp.*.................................................. 114,750
6,900 UGI Corp. ............................................................ 143,175
-----------
1,317,557
-----------
ENTERTAINMENT - .4%
6,000 Hollywood Park, Inc................................................... 60,375
15,983 Spectravision, Inc. (Class B)*........................................ 2,997
-----------
63,372
-----------
FOOD SERVICES - 1.1%
7,000 IHOP Corp.*........................................................... 182,000
-----------
HEALTH & HOSPITALS - 3.4%
1,700 Community Health Services, Inc.*...................................... 60,562
20,200 Magellan Health Services, Inc.*....................................... 484,800
-----------
545,362
-----------
HOUSEHOLD PRODUCTS - .2%
3,200 Crown Crafts, Inc..................................................... 36,800
-----------
INSURANCE - 6.7%
4,100 Ace, LTD. ............................................................ 162,975
15,000 Capsure Holdings Corp.*............................................... 264,375
12,000 E.W. Blanch Holdings, Inc. ........................................... 280,500
9,453 Guaranty National Corp................................................ 145,340
7,000 Penn-America Group, Inc.*............................................. 99,750
5,400 Prudential Reinsurance Holdings, Inc. ................................ 126,225
-----------
1,079,165
-----------
MANUFACTURING - 12.1%
3,800 Alltrista Corp.*...................................................... 68,400
13,000 Baldwin Technology Co. (Class A)...................................... 65,813
5,700 Briggs & Stratton Corp................................................ 247,237
9,000 Carlisle Companies, Inc............................................... 363,375
11,800 Crane Co. ............................................................ 435,125
12,700 Exabyte Corp.*........................................................ 185,737
</TABLE>
<PAGE> 17

QUEST FOR VALUE ACCUMULATION TRUST
SMALL CAP PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)

DECEMBER 31, 1995

<TABLE>
<CAPTION>
SHARES VALUE
- --------- -----------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
MANUFACTURING (CONTINUED)
12,000 Harmon Industries, Inc. .............................................. $ 189,000
6,048 North American Watch Co............................................... 116,424
9,400 Singer Co. N.V........................................................ 262,025
-----------
1,933,136
-----------
PAPER PRODUCTS - 3.3%
44,800 Repap Enterprises, Inc.*.............................................. 198,800
22,800 Shorewood Packaging Corp.*............................................ 324,900
-----------
523,700
-----------
PRINTING & PUBLISHING - 2.3%
8,300 International Imaging Materials, Inc.*................................ 209,575
8,900 Nu-Kote Holdings, Inc. (Class A)*..................................... 151,300
-----------
360,875
-----------
REAL ESTATE - 6.8%
13,291 Cousins Properties, Inc. ............................................. 269,143
6,161 Post Properties, Inc.................................................. 196,382
17,500 Security Capital Industrial Trust, Inc................................ 306,250
12,752 Security Capital Pacific Trust........................................ 251,852
66 Security Capital Realty, Inc. (A)..................................... 58,212
-----------
1,081,839
-----------
RETAIL - .3%
3,500 Maxim Group, Inc.*.................................................... 47,250
-----------
SECURITY/INVESTIGATION - .1%
10,801 Automated Security (Holdings) PLC ADS*................................ 8,101
-----------
TECHNOLOGY - .3%
1,500 Unitrode Corp......................................................... 42,375
-----------
TELECOMMUNICATION - 1.0%
7,000 ECI Telecom, Ltd. .................................................... 159,688
-----------
TEXTILES/APPAREL - 4.4%
11,000 Dyersburg Corp........................................................ 55,000
3,426 Fab Industries, Inc. ................................................. 109,204
6,400 Mohawk Industries, Inc.*.............................................. 100,000
22,000 Westpoint Stevens, Inc. (Class A)*.................................... 441,375
-----------
705,579
-----------
TOBACCO/BEVERAGES/FOOD PRODUCTS - 1.1%
12,900 Morningstar Group, Inc.*.............................................. 103,200
6,000 Sylvan Foods Holdings, Inc.*.......................................... 71,250
-----------
174,450
-----------
</TABLE>
<PAGE> 18

QUEST FOR VALUE ACCUMULATION TRUST
SMALL CAP PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)

DECEMBER 31, 1995

<TABLE>
<CAPTION>
SHARES VALUE
- --------- -----------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
TRANSPORTATION - 1.7%
8,300 Interpool, Inc. *..................................................... $ 148,363
8,500 MTL, Inc*............................................................. 119,000
-----------
267,363
-----------
OTHER - 1.3%
8,250 McGrath RentCorp...................................................... 156,750
6,470 Olympic Steel, Inc.*.................................................. 56,612
-----------
213,362
-----------
Total Common Stocks (cost - $12,333,334).............................. $13,433,441
-----------
CONTRACTS
PURCHASED PUT OPTIONS - .0%
Triton Energy Corp., expiring August '96 @ $50 (premium
20 paid - $5,511)........................................................ $ 4,125
-----------
Total Investments(C) (cost - $14,706,208)................... 98.8% $15,818,711
Other Assets in Excess of Other Liabilities................. 1.2 185,681
----- -----------
Total Net Assets............................................ 100.0% $16,004,392
===== ==========
</TABLE>

- ---------------

* Non-income producing security.

(A) Restricted securities (the Portfolio will not bear any costs, including
those involved in registration under the Securities Act of 1933, in
connection with the disposition of these securities):

<TABLE>
<CAPTION>
DATE OF PAR UNIT UNIT VALUATION AS OF
DESCRIPTION ACQUISITION AMOUNT SHARES COST DECEMBER 31, 1995
- ---------------------------------------------------- ----------- ------- ------ ---- --------------------
<S> <C> <C> <C> <C> <C>
Security Capital Realty, Inc.
12.00%, 6/30/14................................... 9/16/94.. $51,487 -- $ 91 $100
Security Capital Realty, Inc.
Common Stock...................................... 9/16/94 -- 66 $949 $882
</TABLE>

(B) Security Capital at its discretion may defer interest payments.

(C) Aggregate gross unrealized appreciation for securities in which there is an
excess of value over tax cost is $1,745,435, aggregate gross unrealized
depreciation for securities in which there is an excess of tax cost over
value is $632,932, and net unrealized appreciation for Federal income tax
purposes is $1,112,503. Federal income tax basis of portfolio securities is
substantially the same as for financial reporting purposes.

See accompanying notes to financial statements.
<PAGE> 19

QUEST FOR VALUE ACCUMULATION TRUST
SMALL CAP PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES

DECEMBER 31, 1995

<TABLE>
<S> <C>
ASSETS
Investments, at value (cost - $14,706,208)...................................... $15,818,711
Cash............................................................................ 2,921
Receivable from investments sold................................................ 158,499
Receivable from fund shares sold................................................ 24,462
Dividends receivable............................................................ 18,425
Interest receivable............................................................. 3,421
Other assets.................................................................... 169
-----------
Total Assets.................................................................. 16,026,608
-----------
LIABILITIES
Payable for fund shares redeemed................................................ 200
Investment advisory fee payable................................................. 1,050
Other payables and accrued expenses............................................. 20,966
-----------
Total Liabilities............................................................. 22,216
-----------
NET ASSETS
Par value ($.01 per share)...................................................... 8,037
Paid-in-surplus................................................................. 14,215,173
Accumulated undistributed net investment income................................. 211,870
Accumulated undistributed net realized gain on investments...................... 456,809
Net unrealized appreciation on investments...................................... 1,112,503
-----------
Total Net Assets.............................................................. $16,004,392
===========
Fund shares outstanding......................................................... 803,674
-----------
Net asset value per share....................................................... $ 19.91
===========
</TABLE>

See accompanying notes to financial statements.
<PAGE> 20

QUEST FOR VALUE ACCUMULATION TRUST
SMALL CAP PORTFOLIO
STATEMENT OF OPERATIONS

FOR THE YEAR ENDED DECEMBER 31, 1995

<TABLE>
<S> <C>
INVESTMENT INCOME
Dividends...................................................................... $ 143,632
Interest....................................................................... 157,866
----------
Total investment income..................................................... 301,498
----------
OPERATING EXPENSES
Investment advisory fee (note 2a).............................................. 72,770
Custodian fees................................................................. 15,454
Auditing, consulting and tax return preparation fees........................... 10,095
Transfer and dividend disbursing agent fees.................................... 9,197
Legal fees..................................................................... 3,156
Reports and notices to shareholders............................................ 2,392
Miscellaneous.................................................................. 6,639
----------
Total operating expenses.................................................... 119,703
Less: Investment advisory fee waived (note 2a).............................. (30,075)
----------
Net operating expenses................................................. 89,628
----------
Net investment income.................................................. 211,870
----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS - NET
Net realized gain on investments................................................. 456,809
Net change in unrealized appreciation (depreciation) on investments.............. 1,189,804
----------
Net realized gain and change in unrealized appreciation (depreciation)
on investments......................................................... 1,646,613
----------
Net increase in net assets resulting from operations................... $1,858,483
==========
</TABLE>

See accompanying notes to financial statements.
<PAGE> 21

QUEST FOR VALUE ACCUMULATION TRUST
SMALL CAP PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
YEAR ENDED SEPTEMBER 16, 1994(1)
DECEMBER 31, 1995 TO DECEMBER 31, 1994
----------------- ---------------------
<S> <C> <C>
OPERATIONS
Net investment income...................................... $ 211,870 $ 29,623
Net realized gain on investments........................... 456,809 26,352
Net change in unrealized appreciation (depreciation) on
investments.............................................. 1,189,804 (77,301)
----------- ----------
Net increase (decrease) in net assets resulting from
operations.......................................... 1,858,483 (21,326)
----------- ----------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Net investment income...................................... (29,623) --
Net realized gains......................................... (26,352) --
----------- ----------
Total dividends and distributions to shareholders..... (55,975) --
----------- ----------
FUND SHARE TRANSACTIONS
Net proceeds from sales.................................... 7,801,061 1,287,020
Net value of securities received (note 1).................. -- 8,129,274
Reinvestment of dividends and distributions................ 55,975 --
Cost of shares redeemed.................................... (2,865,595) (184,525)
----------- ----------
Net increase in net assets from fund share
transactions........................................ 4,991,441 9,231,769
----------- ----------
Total increase in net assets..................... 6,793,949 9,210,443
NET ASSETS
Beginning of period........................................ 9,210,443 0
----------- ----------
End of period (including undistributed net investment
income of $211,870 and $29,623, respectively)............ $16,004,392 $ 9,210,443
=========== ==========
SHARES ISSUED AND REDEEMED
Issued..................................................... 427,444 75,859
Issued in exchange for securities (note 1)................. -- 464,795
Issued in reinvestment of dividends and distributions...... 3,289 --
Redeemed................................................... (156,903) (10,810)
----------- ----------
Net increase.......................................... 273,830 529,844
=========== ==========
</TABLE>

- ---------------

(1) Commencement of operations.

See accompanying notes to financial statements.
<PAGE> 22

QUEST FOR VALUE ACCUMULATION TRUST
SMALL CAP PORTFOLIO
NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 1995

(1) ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

Quest for Value Accumulation Trust (the "Trust") was organized on May 12,
1994 as a Massachusetts business trust and is registered under the Investment
Company Act of 1940, as amended, as a diversified, open-end management
investment company. The Trust is authorized to issue an unlimited number of
seven classes of shares of beneficial interest at $.01 par value: the Equity
Portfolio, the Small Cap Portfolio, the Global Equity Portfolio, the Managed
Portfolio, the Bond Portfolio, the U. S. Government Income Portfolio and the
Money Market Portfolio. OpCap Advisors (formerly called Quest for Value
Advisors; the "Adviser"), a majority-owned (99%) subsidiary of Oppenheimer
Capital, serves as the Trust's investment adviser. The Small Cap Portfolio (the
"Portfolio"), one of the Trust's seven portfolios, had no operations until
September 16, 1994, when the Enterprise Accumulation Trust Small Cap Portfolio
(formerly known as Quest for Value Accumulation Trust Small Cap Portfolio),
distributed cash and securities with an aggregate market value of $8,129,274 in
exchange for 464,795 shares of the Portfolio. The following is a summary of
significant accounting policies consistently followed by the Portfolio in the
preparation of its financial statements:

(A) VALUATION OF INVESTMENTS

(B) FEDERAL INCOME TAXES

(D) DIVIDENDS AND DISTRIBUTIONS

Dividends and distributions to shareholders from net investment income and
net realized capital gains, if any, are declared and paid at least annually.

QUEST FOR VALUE ACCUMULATION TRUST
SMALL CAP PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 1995

(1) ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(D) DIVIDENDS AND DISTRIBUTIONS (CONTINUED)
accordance with Federal income tax regulations, which may differ from generally
accepted accounting principles. These "book-tax" differences are either
considered temporary or permanent in nature. To the extent these differences are
permanent in nature, such amounts are reclassified within the capital accounts
based on their Federal tax-basis treatment: temporary differences do not require
reclassification. Dividends and distributions which exceed net investment income
and net realized capital gains for financial reporting purposes but not for tax
purposes are reported as dividends in excess of net investment income or
distributions in excess of net realized capital gains, respectively. To the
extent distributions exceed current and accumulated earnings and profits for
Federal income tax purposes, they are reported as distributions of
paid-in-surplus or tax return of capital. At December 31, 1995, the Portfolio
did not have any permanent book-tax differences.

(E) ALLOCATION OF EXPENSES

(F) USE OF ESTIMATES

(G) PURCHASED PUT OPTION ACCOUNTING POLICY

When a Portfolio purchases a put option, it pays a premium and an amount
equal to the premium is recorded as an investment. The option is subsequently
marked-to-market to reflect its current market value. The Portfolio, as
purchaser of an option, has control over whether the option is exercised. If an
option expires unexercised, the Portfolio realizes a loss in the amount of the
premium paid. If an option is exercised, the premium paid is an adjustment to
the proceeds from the sale in determining whether the Portfolio has realized a
gain or loss. The difference between the premium paid and the amount received on
effecting a closing sale transaction is the realized gain or loss. The
Portfolio, as a purchaser of an option, bears the risk of the potential
inability of the counterparties to meet the terms of their contracts.

(2) INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES

The Adviser has agreed to waive that portion of the advisory fee and to
reimburse any necessary expenses to limit operating expenses of the Portfolio to
.74% of average daily net assets on an annual basis through at least December
31, 1995.

(b) Total brokerage commissions paid by the Portfolio for the year ended
December 31, 1995, amounted to $35,395, of which Oppenheimer & Co., Inc., an
affiliate of the Adviser, received $12,805.

(3) PURCHASES AND SALES OF SECURITIES

For the year ended December 31, 1995, purchases and sales of investment
securities, other than short-term securities were $10,968,368 and $6,786,171,
respectively.

(4) CAPITAL LOSS DEFERRAL

Capital losses incurred after October 31, 1995 are deemed to arise on the
first business day of the following fiscal year. Accordingly, the Portfolio
incurred and elected to defer $87,890 in net capital losses.
<PAGE> 24

QUEST FOR VALUE ACCUMULATION TRUST
SMALL CAP PORTFOLIO
FINANCIAL HIGHLIGHTS

FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD:

<TABLE>
<CAPTION>
YEAR ENDED SEPTEMBER 16, 1994(1)
DECEMBER 31, 1995 TO DECEMBER 31, 1994
----------------- ---------------------
<S> <C> <C>
Net asset value, beginning of period..................... $ 17.38 $ 17.49
Income from investment operations:
Net investment income.................................... 0.26 0.06
Net realized and unrealized gain (loss) on investments... 2.37 (0.17)
----------- ----------
Total from investment operations....................... 2.63 (0.11)
----------- ----------
Dividends and distributions to shareholders:
Dividends to shareholders from net investment income..... (0.05) --
Distributions to shareholders from net realized capital
gains.................................................. (0.05) --
----------- ----------
Total dividends and distributions...................... (0.10) --
----------- ----------
Net asset value, end of period........................... $ 19.91 $ 17.38
=========== ==========
Total return(2).......................................... 15.2% (.6%)
=========== ==========
Net assets, end of period................................ $16,004,392 $ 9,210,443
----------- ----------
Ratio of net operating expenses to average net
assets(5).............................................. 0.74%(4) 0.74%(3)
----------- ----------
Ratio of net investment income to average net
assets(5).............................................. 1.75%(4) 1.22%(3)
----------- ----------
Portfolio turnover....................................... 69% 32%
----------- ----------
</TABLE>

- ---------------

(1) Commencement of operations.

(2) Assumes reinvestment of all dividends and distributions.

(3) Annualized.

(4) Average net assets for the year ended December 31, 1995 were $12,128,267.

(5) During the periods presented above, the Adviser waived a portion or all of
its fees and reimbursed the Portfolio for a portion of its operating
expenses. If such waivers and reimbursements had not been in effect, the
ratio of net operating expenses to average net assets would have been 0.99%
and 1.64% and the ratio of net investment income to average net assets would
have been 1.50% and 0.32%, respectively.
<PAGE> 25

REPORT OF INDEPENDENT ACCOUNTANTS

TO THE SHAREHOLDERS AND TRUSTEES OF
QUEST FOR VALUE ACCUMULATION TRUST -- SMALL CAP PORTFOLIO

In our opinion, the accompanying statement of assets and liabilities,
including the schedule 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 the Small Cap Portfolio (one of the
portfolios constituting Quest for Value Accumulation Trust hereafter referred to
as the "Portfolio") at December 31, 1995, the results of its operations for the
year then ended, and the changes in its net assets and the financial highlights
for the year ended December 31, 1995 and for the period September 16, 1994
(commencement of operations) through December 31, 1994, in conformity with
generally accepted accounting principles. These financial statements and
financial highlights (hereafter referred to as "financial statements") are the
responsibility of the Portfolio's management; our responsibility is to express
an opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with generally accepted
auditing standards which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at December 31, 1995 by
correspondence with the custodian, provide a reasonable basis for the opinion
expressed above.

PRICE WATERHOUSE LLP
1177 Avenue of the Americas
New York, New York 10036
February 16, 1996
<PAGE> 26

MANAGED PORTFOLIO

The Managed Portfolio, which invests in stocks, bonds and cash equivalents,
has consistently ranked among the top funds in its category. It continued its
outstanding performance in 1995, providing a total return of 45.6%, well above
the total return of 37.6% with dividends included for the Standard & Poor's 500
Index (S&P 500), an unmanaged index of 500 of the largest corporations weighted
by market capitalization. This performance ranked second best among the 68
flexible portfolio funds in Lipper's Variable Insurance Products Performance
Analysis Service Report. In the 1995 second half, the Portfolio provided a total
return of 12.2%, compared with 14.4% for the S&P 500.

The Portfolio has been a consistently excellent performer over time. This
fact was recognized by Morningstar, Inc., when it named Richard J. Glasebrook
II, manager of the Portfolio, as its 1995 Variable Fund Manager of the Year.
Morningstar is a well-known commentator on variable annuity performance results.
For the five years ended December 31, 1995, the Portfolio's average annual total
return of 23.3%* exceeded by a wide margin the 16.6% return of the S&P 500. This
performance was second best among the 54 flexible portfolio funds in the Lipper
universe. From inception on August 1, 1988 through December 31, 1995, the
Portfolio provided an average annual total return of 19.7%*, compared with 15.2%
for the S&P 500. Returns for the Portfolio take into account expenses incurred
by the Portfolio, but not other charges imposed by the Variable Accounts.

The Portfolio has achieved its superior long-term performance by investing
in quality undervalued stocks and holding them for price appreciation. Its three
largest holdings, McDonnell Douglas Corp., Federal Home Loan Mortgage Corp.
(Freddie Mac) and Citicorp, all reached new highs in the 1995 fourth quarter.
However, the market price of its fourth largest holding, Intel Corp., declined
in the quarter due to fears that a poorer business environment might lead to
reduced demand for the company's semiconductor products. Intel is the
Portfolio's only significant investment in the technology sector.

Although the Portfolio can buy bonds and money market securities, in
practice it invests primarily in common stocks based on the premise that stocks
provide the best returns over time. As of December 31, 1995, 84% of the
Portfolio's net assets were invested in common stocks and securities convertible
into common stocks, 2% in Treasury notes and bonds, and 14% in cash and cash
equivalents.

In the 1995 second half, the Portfolio increased its existing positions or
added new positions in the common stocks of such companies as Becton, Dickinson
& Co., Champion International Corp., Reebok International Ltd., First Interstate
Bancorp, Mattel, Inc. and Tenneco, Inc. Reduced or eliminated during the second
half were investments in such stocks as Mellon Bank Corp., Shaw Industries, Inc.
and Northrop Grumman Corp.

The Portfolio owned the common stocks of 34 companies as of December 31,
1995. Major industry positions were in the banking, financial services,
aerospace and defense, consumer products, and insurance sectors. The Portfolio's
five largest equity holdings were McDonnell Douglas Corp., the nation's largest
manufacturer of military aircraft and an important competitor in commercial
aircraft; Federal Home Loan Mortgage Corp. (Freddie Mac), the second largest
insurer of home mortgages in the United States; Citicorp, a leading bank; Intel
Corp., a major producer of semiconductors; and Freeport McMoRan Copper & Gold
(class B), which produces copper and gold at a mine in the Indonesian region of
Irian Jaya.
- ---------------

* Based on results of the Quest for Value Accumulation Trust and its
predecessor. On September 16, 1994, an investment company which had commenced
operations on August 1, 1988, then called Quest for Value Accumulation Trust
(the "Old Trust"), was effectively divided into two investment funds -- the Old
Trust and the present Quest for Value Accumulation Trust (the "Present
Trust") -- at which time the Present Trust commenced operations. The total net
assets of the Managed Portfolio immediately after the transaction were
$682,601,380 in the Old Trust and $51,354,102 in the Present Trust. For the
periods prior to September 16, 1994, the performance reflects the performance of
the corresponding Managed Portfolio of the Old Trust.
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN
QUEST FOR VALUE ACCUMULATION TRUST MANAGED PORTFOLIO FROM INCEPTION (8/1/88)*
THROUGH 12/31/95 AND TOTAL RETURN ON S&P 500 INDEX+

<TABLE>
<CAPTION>
Measurement Period Managed S&P 500 In-
(Fiscal Year Covered) Portfolio dex
<S> <C> <C>
08/01/88 10000 10000
12/31/88 10440 10383
12/31/89 13839 13673
12/31/90 13336 13249
12/31/91 19458 17285
12/31/92 23098 18602
12/31/93 25498 20475
12/31/94 26165 20746
12/31/95 38083 28542
</TABLE>

QUEST FOR VALUE ACCUMULATION TRUST
MANAGED PORTFOLIO
SCHEDULE OF INVESTMENTS

DECEMBER 31, 1995

<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ---------- -----------
<C> <S> <C>
SHORT-TERM CORPORATE NOTES - 14.3%
AUTOMOTIVE - 2.5%
Ford Motor Credit Co.,
$ 150,000 5.74%, 1/8/96........................................................ $ 149,833
2,310,000 5.76%, 1/10/96....................................................... 2,306,674
-----------
2,456,507
-----------
BANKING - .2%
180,000 Norwest Financial, Inc., 5.62%, 1/22/96.............................. 179,410
-----------
INSURANCE - 6.3%
Prudential Funding Corp.,
3,130,000 5.80%, 1/17/96....................................................... 3,121,932
3,150,000 5.81%, 1/9/96........................................................ 3,145,933
-----------
6,267,865
-----------
MACHINERY/ENGINEERING - .4%
420,000 Deere (John) Capital Corp., 5.55%, 1/17/96........................... 418,964
-----------
MISCELLANEOUS FINANCIAL SERVICES - 4.6%
1,370,000 Beneficial Corp., 5.80%, 1/23/96..................................... 1,365,144
3,000,000 Household Finance Corp., 5.75%, 1/10/96.............................. 2,995,687
130,000 Merrill Lynch & Co., Inc., 5.75%, 1/3/96............................. 129,958
-----------
4,490,789
-----------
TOBACCO/BEVERAGES/FOOD PRODUCTS - .3%
330,000 Philip Morris Companies, Inc., 5.92%, 1/3/96......................... 329,891
-----------
Total Short-Term Corporate Notes (amortized cost - $14,143,426)...... $14,143,426
-----------
U.S. TREASURY NOTES AND BONDS - 1.7%
$ 700,000 6.25%, 8/15/23....................................................... $ 720,237
630,000 7.875%, 4/15/98...................................................... 665,242
297,500 7.875%, 8/15/01...................................................... 332,269
-----------
Total U.S. Treasury Notes and Bonds (cost - $1,520,076).............. $ 1,717,748
-----------
CONVERTIBLE CORPORATE BONDS - .7%
REAL ESTATE - .7%
$ 632,708 Security Capital Realty, Inc., 12.00%, 6/30/14(A)(B)
(cost - $575,845).................................................... $ 632,708
-----------
SHARES
- ----------
CONVERTIBLE PREFERRED STOCKS - .0%
RETAIL - .0%
2,478 Venture Stores, Inc., $3.25 Conv. Pfd. (cost - $102,527)............. $ 24,780
-----------
</TABLE>
<PAGE> 28

QUEST FOR VALUE ACCUMULATION TRUST
MANAGED PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)

DECEMBER 31, 1995

<TABLE>
<CAPTION>
SHARES VALUE
- ---------- -----------
<C> <S> <C>
COMMON STOCKS - 83.2%
AEROSPACE/DEFENSE - 7.6%
20,000 Lockheed Martin Corp. ............................................... $ 1,580,000
63,000 McDonnell Douglas Corp............................................... 5,796,000
2,200 Northrop Grumman Corp. .............................................. 140,800
-----------
7,516,800
-----------
AUTOMOTIVE - 1.7%
31,300 General Motors Corp.................................................. 1,654,987
-----------
BANKING - 16.1%
74,100 Citicorp............................................................. 4,983,225
7,400 First Empire State Corp. ............................................ 1,613,200
15,000 First Interstate Bancorp............................................. 2,047,500
60,000 Mellon Bank Corp..................................................... 3,225,000
19,000 Wells Fargo & Co. ................................................... 4,104,000
-----------
15,972,925
-----------
CHEMICALS - 3.5%
40,000 Hercules, Inc. ...................................................... 2,255,000
10,000 Monsanto Co. ........................................................ 1,225,000
-----------
3,480,000
-----------
CONSUMER PRODUCTS - 7.0%
16,350 Avon Products, Inc. ................................................. 1,232,381
100,000 Mattel, Inc. ........................................................ 3,075,000
93,000 Reebok International Ltd. ........................................... 2,627,250
-----------
6,934,631
-----------
DRUGS & MEDICAL PRODUCTS - 3.0%
40,000 Becton, Dickinson & Co. ............................................. 3,000,000
-----------
ENERGY - 5.6%
20,000 MAPCO, Inc. ......................................................... 1,092,500
60,000 Tenneco, Inc......................................................... 2,977,500
25,700 Triton Energy Corp.*................................................. 1,474,537
-----------
5,544,537
-----------
INSURANCE - 6.4%
51,400 EXEL Ltd. ........................................................... 3,135,400
15,400 Transamerica Corp. .................................................. 1,122,275
180 Transport Holdings, Inc.*............................................ 7,335
33,000 Travelers, Inc. ..................................................... 2,074,875
-----------
6,339,885
-----------
MANUFACTURING - 1.6%
110,000 Shaw Industries, Inc. ............................................... 1,622,500
-----------
</TABLE>
<PAGE> 29

QUEST FOR VALUE ACCUMULATION TRUST
MANAGED PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)

DECEMBER 31, 1995

<TABLE>
<CAPTION>
SHARES VALUE
- ---------- -----------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
METALS & MINING - 4.6%
149,132 Freeport McMoRan Copper & Gold (Class B)............................. $ 4,194,338
9,389 Freeport McMoRan, Inc................................................ 347,393
-----------
4,541,731
-----------
MISCELLANEOUS FINANCIAL SERVICES - 13.8%
74,000 American Express Co.................................................. 3,061,750
90,000 Countrywide Credit Industries, Inc................................... 1,957,500
61,100 Federal Home Loan Mortgage Corp...................................... 5,101,850
29,100 Federal National Mortgage Association................................ 3,612,038
-----------
13,733,138
-----------
PAPER PRODUCTS - 3.6%
84,000 Champion International Corp.......................................... 3,528,000
-----------
REAL ESTATE - .7%
811 Security Capital Realty, Inc.(A)..................................... 715,302
-----------
TECHNOLOGY - 6.0%
75,000 Intel Corp........................................................... 4,256,250
60,000 Unitrode Corp.*...................................................... 1,695,000
-----------
5,951,250
-----------
TELECOMMUNICATIONS - 2.0%
50,000 Sprint Corp.......................................................... 1,993,750
-----------
Total Common Stocks (cost - $61,380,303)............................. $82,529,436
-----------
Total Investments(C) (cost - $77,722,177).................. 99.9% $99,048,098
Other Assets in Excess of Other Liabilities................ 0.1 140,049
----- -----------
Total Net Assets........................................... 100.0% $99,188,147
===== ==========
</TABLE>

- ---------------

* Non-income producing security.

(A) Restricted Securities (the Portfolio will not bear any costs, including
those involved in registration under the Securities Act of 1933, in
connection with the disposition of these securities):

<TABLE>
<CAPTION>
UNIT VALUATION
DATE OF PAR UNIT AS OF
DESCRIPTION ACQUISITION AMOUNT SHARES COST DECEMBER 31, 1995
<S> <C> <C> <C> <C> <C>
---------------------------------------------------------------------------------------------------------------------
Security Capital Realty, Inc.
12.00%, 6/30/14................................ 9/16/94 $632,708 -- $ 91 $ 100
Security Capital Realty, Inc.
Common Stock................................... 9/16/94 -- 811 $949 $ 882
</TABLE>

(B) Security Capital at its discretion may defer interest payments.

(C) Aggregate gross unrealized appreciation for securities in which there is an
excess of value over tax cost is $22,384,125, aggregate gross unrealized
depreciation for securities in which there is an excess of tax cost over
value is $1,058,204 and net unrealized appreciation for Federal income tax
purpose is $21,325,921. Federal income tax basis of portfolio securities is
substantially the same as for financial reporting purposes.
<PAGE> 30

QUEST FOR VALUE ACCUMULATION TRUST
MANAGED PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES

DECEMBER 31, 1995

<TABLE>
<S> <C>
ASSETS
Investments, at value (cost-$77,722,177)........................................ $99,048,098
Receivable from fund shares sold................................................ 42,863
Dividends receivable............................................................ 89,385
Interest receivable............................................................. 74,121
Receivable from Adviser......................................................... 1,313
Other assets.................................................................... 385
-----------
Total Assets.................................................................. 99,256,165
-----------
LIABILITIES
Payable for fund shares redeemed................................................ 964
Due to custodian................................................................ 24,356
Other payables and accrued expenses............................................. 42,698
-----------
Total Liabilities............................................................. 68,018
-----------
NET ASSETS
Par value ($.01 per share)...................................................... 32,907
Paid-in-surplus................................................................. 75,572,376
Accumulated undistributed net investment income................................. 1,378,069
Accumulated undistributed net realized gain on investments...................... 878,874
Net unrealized appreciation on investments...................................... 21,325,921
-----------
Total Net Assets.............................................................. $99,188,147
===========
Fund shares outstanding......................................................... 3,290,749
-----------
Net asset value per share....................................................... $ 30.14
===========
</TABLE>

See accompanying notes to financial statements.
<PAGE> 31

QUEST FOR VALUE ACCUMULATION TRUST
MANAGED PORTFOLIO
STATEMENT OF OPERATIONS

FOR THE YEAR ENDED DECEMBER 31, 1995

<TABLE>
<S> <C>
INVESTMENT INCOME
Dividends..................................................................... $1,270,963
Interest...................................................................... 600,998
-----------
Total investment income.................................................... 1,871,961
-----------
OPERATING EXPENSES
Investment advisory fee (note 2a)............................................. 447,678
Trustee's fees and expenses................................................... 17,443
Custodian fees................................................................ 16,004
Auditing, consulting and tax return preparation fees.......................... 14,421
Transfer and dividend disbursing agent fees................................... 10,207
Reports and notices to shareholders........................................... 9,949
Legal fees.................................................................... 8,106
Miscellaneous................................................................. 25,120
-----------
Total operating expenses................................................... 548,928
Less: Investment advisory fee waived (note 2a)............................. (55,036)
-----------
Net operating expenses................................................ 493,892
-----------
Net investment income................................................. 1,378,069
-----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS - NET
Net realized gain on investments................................................ 1,023,914
Net change in unrealized appreciation (depreciation) on investments............. 23,901,028
-----------
Net realized gain and change in unrealized appreciation (depreciation)
on investments........................................................ 24,924,942
-----------
Net increase in net assets resulting from operations.................. $26,303,011
===========
</TABLE>

See accompanying notes to financial statements.
<PAGE> 32

QUEST FOR VALUE ACCUMULATION TRUST
MANAGED PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
YEAR ENDED SEPTEMBER 16, 1994(1)
DECEMBER 31, 1995 TO DECEMBER 31, 1994
----------------- ----------------------
<S> <C> <C>
OPERATIONS
Net investment income................................... $ 1,378,069 $ 360,801
Net realized gain (loss) on investments................. 1,023,914 (145,040)
Net change in unrealized appreciation (depreciation) on
investments........................................... 23,901,028 (2,575,107)
----------- -----------
Net increase (decrease) in net assets resulting
from operations.................................. 26,303,011 (2,359,346)
----------- -----------
DIVIDENDS TO SHAREHOLDERS
Net investment income................................... (360,801) --
----------- -----------
FUND SHARE TRANSACTIONS
Net proceeds from sales................................. 27,913,098 6,980,338
Net value of securities received (note 1)............... -- 51,354,102
Reinvestment of dividends............................... 360,801 --
Cost of shares redeemed................................. (9,971,333) (1,031,723)
----------- -----------
Net increase in net assets from fund share
transactions..................................... 18,302,566 57,302,717
----------- -----------
Total increase in net assets.................. 44,244,776 54,943,371
NET ASSETS
Beginning of period..................................... 54,943,371 0
----------- -----------
End of period (including undistributed net investment
income of $1,378,069 and $360,801, respectively)...... $99,188,147 $54,943,371
=========== ===========
SHARES ISSUED AND REDEEMED
Issued.................................................. 1,016,970 330,594
Issued in exchange for securities (note 1).............. -- 2,355,693
Issued in reinvestment of dividends..................... 15,866 --
Redeemed................................................ (379,452) (48,922)
----------- -----------
Net increase....................................... 653,384 2,637,365
=========== ===========
</TABLE>

- ---------------

(1) Commencement of operations.

See accompanying notes to financial statements.
<PAGE> 33

QUEST FOR VALUE ACCUMULATION TRUST
MANAGED PORTFOLIO
NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 1995

(1) ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

Quest for Value Accumulation Trust (the "Trust") was organized on May 12,
1994 as a Massachusetts business trust and is registered under the Investment
Company Act of 1940, as amended, as a diversified, open-end management
investment company. The Trust is authorized to issue an unlimited number of
seven classes of shares of beneficial interest at $.01 par value: the Equity
Portfolio, the Small Cap Portfolio, the Global Equity Portfolio, the Managed
Portfolio, the Bond Portfolio, the U. S. Government Income Portfolio and the
Money Market Portfolio. OpCap Advisors (formerly called Quest for Value
Advisors; the "Adviser"), a majority-owned (99%) subsidiary of Oppenheimer
Capital, serves as the Trust's investment adviser. The Managed Portfolio (the
"Portfolio"), one of the Trust's seven portfolios, had no operations until
September 16, 1994, when the Enterprise Accumulation Trust Managed Portfolio
(formerly known as Quest for Value Accumulation Trust Managed Portfolio),
distributed cash and securities with an aggregate market value of $51,354,102 in
exchange for 2,355,693 shares of the Portfolio. The following is a summary of
significant accounting policies consistently followed by the Portfolio in the
preparation of its financial statements:

(A) VALUATION OF INVESTMENTS

(B) FEDERAL INCOME TAXES

(D) DIVIDENDS AND DISTRIBUTIONS

Dividends and distributions to shareholders from net investment income and
net realized capital gains, if any, are declared and paid at least annually.
<PAGE> 34

QUEST FOR VALUE ACCUMULATION TRUST
MANAGED PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 1995

(E) ALLOCATION OF EXPENSES

(F) USE OF ESTIMATES

(2) INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES

The Adviser has agreed to waive that portion of the advisory fee and to
reimburse any necessary expenses to limit operating expenses of the Portfolio to
.66% of average daily net assets on an annual basis through at least December
31, 1995.

(b) Total brokerage commissions paid by the Portfolio for the year ended
December 31, 1995, amounted to $65,136, of which Oppenheimer & Co., Inc., an
affiliate of the Adviser, received $26,544.

(3) PURCHASES AND SALES OF SECURITIES

For the year ended December 31, 1995, purchases and sales of investment
securities, other than short-term securities were $30,484,410 and $15,035,906
respectively.

(4) CAPITAL LOSS CARRYFORWARD

For the fiscal year ended December 31, 1995, the Portfolio will utilize
$145,040 of net capital loss carryforwards.
<PAGE> 35

QUEST FOR VALUE ACCUMULATION TRUST
MANAGED PORTFOLIO
FINANCIAL HIGHLIGHTS

FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD:

<TABLE>
<CAPTION>
SEPTEMBER 16, 1994
YEAR ENDED (1)
DECEMBER 31, 1995 TO DECEMBER 31, 1994
----------------- ---------------------
<S> <C> <C>
Net asset value, beginning of period....................... $ 20.83 $ 21.80
Income from investment operations:
Net investment income...................................... 0.42 0.14
Net realized and unrealized gain (loss) on investments..... 9.02 (1.11)
----------- -----------
Total from investment operations......................... 9.44 (0.97)
----------- -----------
Dividends to shareholders:
Dividends to shareholders from net investment income....... (0.13) --
----------- -----------
Net asset value, end of period............................. $ 30.14 $ 20.83
=========== ===========
Total return(2)............................................ 45.6% (4.4%)
=========== ===========
Net assets, end of period.................................. $99,188,147 $54,943,371
----------- -----------
Ratio of net operating expenses to average net assets(5)... 0.66%(4) 0.66%(3)
----------- -----------
Ratio of net investment income to average net assets(5).... 1.85%(4) 2.34%(3)
----------- -----------
Portfolio turnover......................................... 22% 8%
----------- -----------
</TABLE>

- ---------------

(1) Commencement of operations.

(2) Assumes reinvestment of all dividends and distributions.

(3) Annualized.

(4) Average net assets for the year ended December 31, 1995 were $74,612,954.

(5) During the periods presented above, the Adviser waived a portion of its
fees. If such waivers had not been in effect, the ratio of net operating
expenses to average net assets would have been 0.74% and 0.96% and the ratio
of net investment income to average net assets would have been 1.77% and
2.04%, respectively.
<PAGE> 36

REPORT OF INDEPENDENT ACCOUNTANTS

TO THE SHAREHOLDERS AND TRUSTEES OF
QUEST FOR VALUE ACCUMULATION TRUST -- MANAGED PORTFOLIO

In our opinion, the accompanying statement of assets and liabilities,
including the schedule 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 the Managed Portfolio (one of the
portfolios constituting Quest for Value Accumulation Trust, hereafter referred
to as the "Portfolio") at December 31, 1995, the results of its operations for
the year then ended, and the changes in its net assets and the financial
highlights for the year ended December 31, 1995 and for the period September 16,
1994 (commencement of operations) through December 31, 1994, in conformity with
generally accepted accounting principles. These financial statements and
financial highlights (hereafter referred to as "financial statements") are the
responsibility of the Portfolio's management; our responsibility is to express
an opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with generally accepted
auditing standards which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at December 31, 1995 by
correspondence with the custodian, provide a reasonable basis for the opinion
expressed above.

PRICE WATERHOUSE LLP
1177 Avenue of the Americas
New York, New York 10036
February 16, 1996
<PAGE> 37

BOND PORTFOLIO

The Bond Portfolio offers a convenient way to invest in a diversified group
of quality debt securities; corporate and government. It provided a total return
of 15.2% in 1995, compared with a total return of 18.5% for the Lehman Brothers
Aggregate Bond Index, a widely followed benchmark. In the five years ended
December 31, 1995, the Portfolio produced an average annual total return of
8.1%*, compared with 9.5% for the index. Since August 1, 1988, the Portfolio has
generated an average annual total return of 7.9%*. These returns take into
account expenses incurred by the Portfolio. Other charges are imposed by the
Variable Accounts.

In managing the Portfolio, we seek to provide a high level of current
income consistent with moderate risk of capital and maintenance of liquidity.
The Portfolio offers the potential for higher returns than the U.S. Government
Income Portfolio and is intended for investors willing to accept greater price
volatility through investments in longer term securities in return for greater
profit potential.

As of December 31, 1995, the Portfolio was invested 43% in Treasury notes
and bonds, 31% in corporate notes and bonds, 24% in U.S. Government agency
securities, and 2% in assets in excess of liabilities. Because corporates offer
virtually no yield advantage over governments at this time, the Portfolio is
currently invested relatively heavily in government securities. The effective
average maturity of the Portfolio was 9.7 years as of December 31, 1995.
- ---------------

* Based on results of the Quest for Value Accumulation Trust and its
predecessor. On September 16, 1994, an investment company which had commenced
operations on August 1, 1988, then called Quest for Value Accumulation Trust
(the "Old Trust"), was effectively divided into two investment funds -- the
Old Trust and the present Quest for Value Accumulation Trust (the "Present
Trust") -- at which time the Present Trust commenced operations. The total net
assets of $3,756,161 of the Bond Portfolio immediately after the transaction
were entirely in the Present Trust. For the periods prior to September 16,
1994, the performance reflects the performance of the corresponding Bond
Portfolio of the Old Trust.

COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN
QUEST FOR VALUE ACCUMULATION TRUST BOND PORTFOLIO FROM INCEPTION (8/1/88)*
THROUGH 12/31/95 AND TOTAL RETURN ON LEHMAN AGGREGATE BOND INDEX+

<TABLE>
<CAPTION>
Lehman Bros.
Measurement Period Bond Portfo- Aggregate
(Fiscal Year Covered) lio Bond Index
<S> <C> <C>
08/01/88 10000 10000
12/31/88 10000 10249
12/31/89 11022 11738
12/31/90 11910 12789
12/31/91 13747 14836
12/31/92 14623 15934
12/31/93 15850 17488
12/31/94 15243 16978
12/31/95 17564 20114
</TABLE>

QUEST FOR VALUE ACCUMULATION TRUST
BOND PORTFOLIO
SCHEDULE OF INVESTMENTS

DECEMBER 31, 1995

<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ---------- ----------
<C> <S> <C>
U.S. TREASURY NOTES AND BONDS - 39.4%
$350,000 5.75%, 10/31/97...................................................... $ 353,392
150,000 5.75%, 8/15/03....................................................... 151,804
550,000 6.125%, 7/31/96...................................................... 552,662
175,000 7.25%, 11/30/96...................................................... 177,980
190,000 7.25%, 8/15/04....................................................... 211,286
175,000 10.375%, 11/15/12.................................................... 241,938
----------
Total U.S. Treasury Notes and Bonds (cost-$1,641,179)................ $1,689,062
----------
U.S. TREASURY SECURITY, STRIPPED INTEREST PAYMENT - 3.8%
$750,000 (zero coupon), due 5/15/20 (cost-$120,452)........................... $ 165,045
----------
U.S. GOVERNMENT AGENCY NOTES AND BONDS - 24.0%
$156,598 Federal Home Loan Mortgage Corp., 8.50%, 10/15/19.................... $ 159,680
Federal National Mortgage Association
225,804 7.00%, 1/1/10........................................................ 229,966
283,185 8.00%, 8/1/24........................................................ 293,272
14,009 9.00%, 8/1/02........................................................ 14,749
28,274 9.50%, 12/1/06....................................................... 29,758
90,381 9.50%, 12/1/19....................................................... 96,284
194,852 Government National Mortgage Association, 8.50%, 3/15/25............. 204,594
----------
Total U.S. Government Agency Notes and Bonds (cost-$996,587)......... $1,028,303
----------
CORPORATE NOTES - 31.4%
AUTOMOTIVE - 8.3%
$175,000 Chrysler Financial Corp., 8.42%, 2/1/99.............................. $ 187,182
150,000 General Motors Acceptance Corp., 8.25%, 2/24/04...................... 168,504
----------
355,686
----------
CONGLOMERATES - 5.2%
200,000 General Electric Capital Corp., 8.375%, 3/1/01....................... 221,828
----------
INSURANCE - 2.5%
100,000 St. Paul Companies, Inc., 9.375%, 6/15/97............................ 105,065
----------
MISCELLANEOUS FINANCIAL SERVICES - 10.7%
200,000 Associates Corp., N.A., 5.25%, 3/30/00............................... 196,368
100,000 BarclaysAmerican Corp., 7.875%, 8/15/98.............................. 105,482
150,000 Household Finance Corp., 6.875%, 3/1/03.............................. 155,989
----------
457,839
----------
</TABLE>
<PAGE> 39

QUEST FOR VALUE ACCUMULATION TRUST
BOND PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)

DECEMBER 31, 1995

<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ---------- ----------
<C> <S> <C>
CORPORATE NOTES (CONTINUED)
RETAIL - 4.7%
$200,000 Sears Roebuck & Co., 8.55%, 8/1/96................................... $ 203,110
----------
Total Corporate Notes (cost-$1,272,402).............................. $1,343,528
----------
Total Investments (A) (cost-$4,030,620)..................... 98.6% $4,225,938
Other Assets in Excess of Other Liabilities................. 1.4 58,517
----- ----------
Total Net Assets............................................ 100.0% $4,284,455
===== =========
</TABLE>

- ---------------

(A) Aggregate gross unrealized appreciation for securities in which there is an
excess of value over tax cost is $195,318, aggregate gross unrealized
depreciation for securities in which there is an excess of tax cost over
value is $0, and net unrealized appreciation for Federal income tax purposes
is $195,318. Federal income tax basis of portfolio securities is
substantially the same as for financial reporting purposes.

See accompanying notes to financial statements.
<PAGE> 40

QUEST FOR VALUE ACCUMULATION TRUST
BOND PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES

DECEMBER 31, 1995

<TABLE>
<S> <C>
ASSETS
Investments, at value (cost - $4,030,620)........................................ $4,225,938
Cash............................................................................. 8,680
Interest receivable.............................................................. 65,823
Other assets..................................................................... 76
----------
Total Assets................................................................... 4,300,517
----------
LIABILITIES
Payable for fund shares redeemed................................................. 16
Dividends payable................................................................ 1,593
Other payables and accrued expenses.............................................. 14,453
----------
Total Liabilities.............................................................. 16,062
----------
NET ASSETS
Par value ($.01 per share)....................................................... 4,287
Paid-in-surplus.................................................................. 4,009,340
Accumulated undistributed net realized gain on investments....................... 75,510
Net unrealized appreciation on investments....................................... 195,318
----------
Total Net Assets............................................................... $4,284,455
==========
Fund shares outstanding.......................................................... 428,741
----------
Net asset value per share........................................................ $ 9.99
==========
</TABLE>

See accompanying notes to financial statements.
<PAGE> 41

QUEST FOR VALUE ACCUMULATION TRUST
BOND PORTFOLIO
STATEMENT OF OPERATIONS

FOR THE YEAR ENDED DECEMBER 31, 1995

<TABLE>
<S> <C>
INVESTMENT INCOME
Interest........................................................................ $285,303
--------
OPERATING EXPENSES
Investment advisory fee (note 2a)............................................... 20,517
Custodian fees.................................................................. 17,505
Auditing, consulting and tax return preparation fees............................ 10,164
Transfer and dividend disbursing agent fees..................................... 9,068
Legal fees...................................................................... 2,429
Reports and notices to shareholders............................................. 668
Miscellaneous................................................................... 1,833
--------
Total operating expenses..................................................... 62,184
Less: Investment advisory fee waived and expenses reimbursed (note 2a)....... (21,209)
--------
Net operating expenses.................................................. 40,975
--------
Net investment income................................................... 244,328
--------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS - NET
Net realized gain on investments.................................................. 79,769
Net change in unrealized appreciation (depreciation) on investments............... 269,489
--------
Net realized gain and change in unrealized appreciation (depreciation)
on
investments........................................................... 349,258
--------
Net increase in net assets resulting from operations.................... $593,586
========
</TABLE>

See accompanying notes to financial statements.
<PAGE> 42

QUEST FOR VALUE ACCUMULATION TRUST
BOND PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
YEAR ENDED SEPTEMBER 16, 1994(1)
DECEMBER 31, 1995 TO DECEMBER 31, 1994
----------------- ---------------------
<S> <C> <C>
OPERATIONS
Net investment income.................................... $ 244,328 $ 66,718
Net realized gain (loss) on investments.................. 79,769 (4,259)
Net change in unrealized appreciation (depreciation) on
investments............................................ 269,489 (74,170)
----------- ----------
Net increase (decrease) in net assets resulting from
operations........................................ 593,586 (11,711)
----------- ----------
DIVIDENDS TO SHAREHOLDERS
Net investment income.................................... (244,328) (66,718)
----------- ----------
FUND SHARE TRANSACTIONS
Net proceeds from sales.................................. 1,574,585 84,253
Net value of securities received (note 1)................ -- 3,756,161
Reinvestment of dividends................................ 242,735 66,718
Cost of shares redeemed.................................. (1,537,477) (173,349)
----------- ----------
Net increase in net assets from fund share
transactions...................................... 279,843 3,733,783
----------- ----------
Total increase in net assets................... 629,101 3,655,354
NET ASSETS
Beginning of period...................................... 3,655,354 0
----------- ----------
End of period............................................ $ 4,284,455 $ 3,655,354
=========== ==========
SHARES ISSUED AND REDEEMED
Issued................................................... 165,081 8,985
Issued in exchange for securities (note 1)............... -- 399,756
Issued in reinvestment of dividends...................... 25,011 7,214
Redeemed................................................. (158,718) (18,588)
----------- ----------
Net increase........................................ 31,374 397,367
=========== ==========
</TABLE>

- ---------------

(1) Commencement of operations.

See accompanying notes to financial statements.
<PAGE> 43

QUEST FOR VALUE ACCUMULATION TRUST
BOND PORTFOLIO
NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 1995

(1) ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

Quest for Value Accumulation Trust (the "Trust") was organized on May 12,
1994 as a Massachusetts business trust and is registered under the Investment
Company Act of 1940, as amended, as a diversified, open-end management
investment company. The Trust is authorized to issue an unlimited number of
seven classes of shares of beneficial interest at $.01 par value; the Equity
Portfolio, the Small Cap Portfolio, the Global Equity Portfolio, the Managed
Portfolio, the Bond Portfolio, the U. S. Government Income Portfolio and the
Money Market Portfolio. OpCap Advisors (formerly called Quest for Value
Advisors; the "Adviser"), a majority-owned (99%) subsidiary of Oppenheimer
Capital, serves as the Trust's investment adviser. The Bond Portfolio (the
"Portfolio"), one of the Trust's seven portfolios had no operations until
September 16, 1994, when the Enterprise Accumulation Trust Bond Portfolio
(formerly known as Quest for Value Accumulation Trust Bond Portfolio),
distributed cash and securities with an aggregate market value of $3,756,161 in
exchange for 399,756 shares of the Portfolio. The following is a summary of
significant accounting policies consistently followed by the Portfolio in the
preparation of its financial statements.

(A) VALUATION OF INVESTMENTS

Investment debt securities (other than short-term obligations) are valued
each business day by an independent pricing service approved by the Board of
Trustees. Investments are valued by the pricing service using methods which
include current market quotations from a major market maker in the securities
and trader-reviewed "matrix" prices. Short-term debt securities having a
remaining maturity of more than sixty days are valued on a "marked-to-market"
basis, that is, at prices based upon market quotations for securities of similar
type, yield, quality and maturity. Short-term debt securities having a remaining
maturity of sixty days or less are valued at amortized cost, which approximates
market value. Any securities or other assets for which market quotations are not
readily available are valued at their fair value as determined in good faith by
the Board of Trustees. The ability of issuers of debt instruments to meet their
obligations may be affected by economic developments in a specific industry or
region.

(B) FEDERAL INCOME TAXES

Security transactions are accounted for on the trade date. In determining
the gain or loss from the sale of securities, the cost of securities sold has
been determined on the basis of identified cost. Interest income is accrued as
earned. Discounts or premiums on debt securities purchased are accreted or
amortized 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.
Distributions from net realized capital gains, if any, are declared and paid at
least annually.

QUEST FOR VALUE ACCUMULATION TRUST
BOND PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 1995

(1) ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(D) DIVIDENDS AND DISTRIBUTIONS (CONTINUED)
based on their Federal tax-basis treatment: temporary differences do not require
reclassification. Dividends and distributions which exceed net investment income
and net realized capital gains for financial reporting purposes but not for tax
purposes are reported as dividends in excess of net investment income or
distributions in excess of net realized capital gains, respectively. To the
extent distributions exceed current and accumulated earnings and profits for
Federal income tax purposes, they are reported as distributions of paid-
in-surplus or tax return of capital. At December 31, 1995, the Portfolio did not
have any permanent book-tax differences.

(E) ALLOCATION OF EXPENSES

(F) USE OF ESTIMATES

(2) INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES

(a) The investment advisory fee is payable monthly to the Adviser, and is
computed as a percentage of the Portfolio's net assets as of the close of
business each day at the annual rate of .50%.

The Adviser has agreed to waive that portion of the advisory fee and to
reimburse any necessary expenses to limit operating expenses of the Portfolio to
1.00% of average daily net assets on an annual basis through at least December
31, 1995.

(3) PURCHASES AND SALES OF SECURITIES

For the year ended December 31, 1995, purchases and sales of investment
securities, other than short-term were $5,824,578 and $5,281,293, respectively.

(4) CAPITAL LOSS CARRYFORWARD

For the fiscal year ended December 31, 1995, the Portfolio will utilize
$4,259 of net capital loss carryforward.
<PAGE> 45

QUEST FOR VALUE ACCUMULATION TRUST
BOND PORTFOLIO
FINANCIAL HIGHLIGHTS

FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD:

<TABLE>
<CAPTION>
YEAR ENDED SEPTEMBER 16, 1994(1)
DECEMBER 31, 1995 TO DECEMBER 31, 1994
----------------- ---------------------
<S> <C> <C>
Net asset value, beginning of period..................... $ 9.20 $ 9.40
Income from investment operations:
Net investment income.................................... 0.58 0.17
Net realized and unrealized gain (loss) on investments... 0.79 (0.20)
---------- ----------
Total from investment operations....................... 1.37 (0.03)
---------- ----------
Dividends to shareholders:
Dividends to shareholders from net investment income..... (0.58) (0.17)
---------- ----------
Net asset value, end of period........................... $ 9.99 $ 9.20
========== ==========
Total return(2).......................................... 15.2% (0.3%)
========== ==========
Net assets, end of period................................ $ 4,284,455 $ 3,655,354
---------- ----------
Ratio of net operating expenses to average net
assets(5).............................................. 1.00%(4) 1.00%(3)
---------- ----------
Ratio of net investment income to average net
assets(5).............................................. 5.95%(4) 6.26%(3)
---------- ----------
Portfolio turnover....................................... 134% 7%
---------- ----------
</TABLE>

- ---------------

(1) Commencement of operations.

(2) Assumes reinvestment of all dividends and distributions.

(3) Annualized.

(4) Average net assets for the year ended December 31, 1995 were $4,103,422.

(5) During the periods presented above, the Adviser waived a portion or all of
its fees and reimbursed the Portfolio for a portion of its operating
expenses. If such waivers and reimbursements had not been in effect, the
ratio of net operating expenses to average net assets would have been 1.52%
and 2.05% and the ratio of net investment income to average net assets would
have been 5.43% and 5.21%, respectively.
<PAGE> 46

REPORT OF INDEPENDENT ACCOUNTANTS

TO THE SHAREHOLDERS AND TRUSTEES OF
QUEST FOR VALUE ACCUMULATION TRUST -- BOND PORTFOLIO

In our opinion, the accompanying statement of assets and liabilities,
including the schedule 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 the Bond Portfolio (one of the
portfolios constituting Quest for Value Accumulation Trust, hereafter referred
to as the "Portfolio") at December 31, 1995, the results of its operations for
the year then ended, and the changes in its net assets and the financial
highlights for the year ended December 31, 1995 and for the period September 16,
1994 (commencement of operations) through December 31, 1994, in conformity with
generally accepted accounting principles. These financial statements and
financial highlights (hereafter referred to as "financial statements") are the
responsibility of the Portfolio's management; our responsibility is to express
an opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with generally accepted
auditing standards which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at December 31, 1995 by
correspondence with the custodian, provide a reasonable basis for the opinion
expressed above.

PRICE WATERHOUSE LLP
1177 Avenue of the Americas
New York, New York 10036
February 16, 1996
<PAGE> 47

MONEY MARKET PORTFOLIO

The Money Market Portfolio seeks maximum current income consistent with
stability of principal and liquidity. The seven-day compounded yield of the
Portfolio was 4.89% as of December 31, 1995. The average dollar-weighted
portfolio maturity was 16 days.

We seek to manage the Portfolio conservatively, recognizing that
shareholders of money market funds view liquidity and safety of principal as
their most important objectives. Rather than subjecting the Money Market
Portfolio to additional risk to achieve a higher return, we maintain a rigorous
approach to analyzing and investing in quality credits. These include the
short-term securities of leading financial institutions and industrial companies
in the United States and abroad, as well as marketable obligations of the United
States Government, its agencies and instrumentalities. As of December 31, 1995,
72% of the Portfolio's assets were allocated to short-term corporate notes, with
the remaining assets invested in U.S. Government agency securities. We continued
to avoid all investments in derivative securities.

Investments in the Money Market Portfolio are not insured or guaranteed by
the U.S. Government. There is no assurance that the Portfolio will maintain a
stable net asset value.
<PAGE> 48

QUEST FOR VALUE ACCUMULATION TRUST
MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS

DECEMBER 31, 1995

<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- --------- ----------
<C> <S> <C>
U.S. GOVERNMENT AGENCY NOTES - 27.4%
$ 90,000 Federal Farm Credit Bank, 5.62%, 1/24/96........................... $ 89,677
Federal Home Loan Bank
165,000 5.60%, 1/5/96...................................................... 164,897
165,000 5.60%, 1/8/96...................................................... 164,820
140,000 5.62%, 1/8/96...................................................... 139,848
160,000 5.63%, 1/3/96...................................................... 159,950
Federal Home Loan Mortgage Corp.
150,000 5.58%, 1/5/96...................................................... 149,907
160,000 5.63%, 1/2/96...................................................... 159,975
165,000 Federal National Mortgage Association, 5.60%, 1/5/96............... 164,897
----------
Total U.S. Government Agency Notes (amortized cost - $1,193,971)... $1,193,971
----------
SHORT-TERM CORPORATE NOTES - 72.4%
AGRICULTURE - 3.9%
$ 170,000 Cargill, Inc., 5.62%, 2/6/96....................................... $ 169,045
----------
AUTOMOTIVE - 7.1%
150,000 Ford Motor Credit Co., 5.72%, 1/4/96............................... 149,928
160,000 General Motors Acceptance Corp., 5.85%, 1/29/96.................... 159,272
----------
309,200
----------
BANKING - 11.5%
230,000 Abby National North America, 5.60%, 1/8/96......................... 229,750
170,000 Commerzbank U.S. Finance, Inc., 5.73%, 1/12/96..................... 169,702
100,000 Svenska Handelsbanken, Inc., 5.75%, 1/16/96........................ 99,760
----------
499,212
----------
CONGLOMERATES - 3.0%
130,000 General Electric Capital Corp., 5.76%, 1/22/96..................... 129,563
----------
ENERGY - 7.5%
170,000 Chevron Oil Finance Co., 5.65%, 1/4/96............................. 169,920
160,000 Texaco, Inc., 5.60%, 1/31/96....................................... 159,253
----------
329,173
----------
INSURANCE - 3.4%
153,000 Prudential Funding Corp., 5.52%, 1/22/96........................... 152,507
----------
MACHINERY - 3.0%
130,000 Deere (John) Capital Corp., 5.60%, 2/2/96.......................... 129,353
----------
</TABLE>
<PAGE> 49

QUEST FOR VALUE ACCUMULATION TRUST
MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)

DECEMBER 31, 1995

<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- -------- ----------
<C> <S> <C>
SHORT-TERM CORPORATE NOTES (CONTINUED)
MISCELLANEOUS FINANCIAL SERVICES - 22.0%
$ 140,000 American Express Credit Corp., 5.70%, 1/19/96...................... $ 139,601
100,000 Beneficial Corp., 5.62%, 1/3/96.................................... 99,969
160,000 Hanson Finance (U.K.) PLC, 5.73%, 1/17/96.......................... 159,593
150,000 Household Finance Corp., 5.75%, 1/11/96............................ 149,760
150,000 Merrill Lynch & Co., Inc., 5.70%, 1/29/96.......................... 149,335
130,000 Student Loan Corp., 5.73%, 1/16/96................................. 129,690
130,000 Transamerica Finance Group, 5.71%, 1/2/96.......................... 129,979
----------
957,927
----------
TECHNOLOGY - 7.3%
160,000 Hewlett Packard Co., 5.63%, 1/16/96................................ 159,625
160,000 IBM Credit Corp., 5.70%, 1/12/96................................... 159,721
----------
319,346
----------
TELECOMMUNICATIONS - 3.7%
160,000 GTE Northwest, Inc., 5.81%, 1/10/96................................ 159,768
----------
Total Short-Term Corporate Notes (amortized cost - $3,155,094)..... $3,155,094
----------
Total Investments (A) (amortized cost - $4,349,065)........ 99.8% $4,349,065
Other Assets in Excess of Other Liabilities................ 0.2 7,019
----- ----------
Total Net Assets........................................... 100.0% $4,356,084
===== =========
</TABLE>

- ---------------

(A) Federal income tax basis of portfolio securities is the same for financial
reporting purposes.

See accompanying notes to financial statements.
<PAGE> 50

QUEST FOR VALUE ACCUMULATION TRUST
MONEY MARKET PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES

DECEMBER 31, 1995

<TABLE>
<S> <C>
ASSETS
Investments, at value (amortized cost - $4,349,065).............................. $4,349,065
Cash............................................................................. 25,688
Receivable from Adviser.......................................................... 30
Other assets..................................................................... 125
----------
Total Assets................................................................... 4,374,908
----------
LIABILITIES
Payable for fund shares redeemed................................................. 4,018
Dividends payable................................................................ 1,700
Other payables and accrued expenses.............................................. 13,106
----------
Total Liabilities.............................................................. 18,824
----------
NET ASSETS
Par value ($.01 per share)....................................................... 43,560
Paid-in-surplus.................................................................. 4,312,477
Net realized gain on investments................................................. 47
----------
Total Net Assets............................................................... $4,356,084
==========
Fund shares outstanding.......................................................... 4,356,037
----------
Net asset value per share........................................................ $ 1.00
==========
</TABLE>

See accompanying notes to financial statements.
<PAGE> 51

QUEST FOR VALUE ACCUMULATION TRUST
MONEY MARKET PORTFOLIO
STATEMENT OF OPERATIONS

FOR THE YEAR ENDED DECEMBER 31, 1995

<TABLE>
<S> <C>
INVESTMENT INCOME
Interest........................................................................ $244,777
--------
OPERATING EXPENSES
Investment advisory fee (note 2a)............................................... 16,477
Auditing, consulting and tax return preparation fees............................ 9,977
Transfer and dividend disbursing agent fees..................................... 9,067
Custodian fees.................................................................. 6,785
Legal fees...................................................................... 2,420
Reports and notices to shareholders............................................. 356
Miscellaneous................................................................... 2,044
--------
Total operating expenses..................................................... 47,126
Less: Investment advisory fee waived (note 2a)............................... (5,702)
--------
Net operating expenses.................................................. 41,424
--------
Net investment income................................................... 203,353
--------
REALIZED GAIN ON INVESTMENTS - NET
Net realized gain on investments.................................................. 47
--------
Net increase in net assets resulting from operations.................... $203,400
========
</TABLE>

See accompanying notes to financial statements.
<PAGE> 52

QUEST FOR VALUE ACCUMULATION TRUST
MONEY MARKET PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
YEAR ENDED SEPTEMBER 16, 1994(1)
DECEMBER 31, 1995 TO DECEMBER 31, 1994
----------------- ----------------------
<S> <C> <C>
OPERATIONS
Net investment income................................... $ 203,353 $ 42,375
Net realized gain on investments........................ 47 --
----------- ----------
Net increase in net assets resulting from
operations....................................... 203,400 42,375
----------- ----------
DIVIDENDS TO SHAREHOLDERS
Net investment income................................... (203,353) (42,375)
----------- ----------
FUND SHARE TRANSACTIONS
Net proceeds from sales................................. 4,346,773 469,215
Net value of securities received (note 1)............... -- 3,407,191
Reinvestment of dividends............................... 201,653 42,375
Cost of shares redeemed................................. (3,711,915) (499,255)
----------- ----------
Net increase in net assets from fund share
transactions..................................... 836,511 3,419,526
----------- ----------
Total increase in net assets.................. 836,558 3,419,526
NET ASSETS
Beginning of period (note 1)............................ 3,519,526 100,000
----------- ----------
End of period........................................... $ 4,356,084 $3,519,526
=========== ==========
SHARES ISSUED AND REDEEMED
Issued.................................................. 4,346,773 469,215
Issued in exchange for securities (note 1).............. -- 3,407,191
Issued in reinvestment of dividends..................... 201,653 42,375
Redeemed................................................ (3,711,915) (499,255)
----------- ----------
Net increase....................................... 836,511 3,419,526
=========== ==========
</TABLE>

- ---------------

(1) Commencement of operations.

See accompanying notes to financial statements.
<PAGE> 53

QUEST FOR VALUE ACCUMULATION TRUST
MONEY MARKET PORTFOLIO
NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 1995

(1) ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

Quest for Value Accumulation Trust (the "Trust") was organized May 12, 1994
as a Massachusetts business trust and is registered under the Investment Company
Act of 1940, as amended, as a diversified, open-end management investment
company. The Trust is authorized to issue an unlimited number of seven classes
of shares of beneficial interest at $.01 par value; the Equity Portfolio, the
Small Cap Portfolio, the Global Equity Portfolio, the Managed Portfolio, the
Bond Portfolio, the U. S. Government Income Portfolio and the Money Market
Portfolio. OpCap Advisors (formerly called Quest for Value Advisors; the
"Adviser"), a majority-owned (99%) subsidiary of Oppenheimer Capital, serves as
the Trust's investment adviser. The Money Market Portfolio (the "Portfolio"),
one of the Trust's seven portfolios had no operations until September 7, 1994
other than the sale and issuance of 100,000 shares of the Portfolio to the
Adviser at an aggregate purchase price of $100,000 to provide the initial
capital of the Trust. On September 16, 1994, Enterprise Accumulation Trust Money
Market Portfolio (formerly known as Quest for Value Accumulation Trust Money
Market Portfolio), distributed cash and securities aggregating $3,407,191 in
exchange for 3,407,191 shares of the Portfolio. The following is a summary of
significant accounting policies consistently followed by the Portfolio in the
preparation of its financial statements:

(A) VALUATION OF INVESTMENTS

Portfolio securities are valued at amortized cost, which approximates
market value.

(B) FEDERAL INCOME TAXES

Security transactions are accounted for on the trade date. In determining
the gain or loss from the sale of securities, the cost of securities sold has
been determined on the basis of identified cost. Interest income is accrued as
earned. Discounts or premiums on debt securities purchased are accreted or
amortized 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.
Distributions from net realized capital gains, if any, are declared and paid at
least annually.

The Portfolio records dividends and distributions to its shareholders on
the ex-dividend date. The amount of dividends and distributions from net
investment income and net realized capital gains are determined in accordance
with Federal income tax regulations, which may differ from generally accepted
accounting principles. These "book-tax" differences are either considered
temporary or permanent in nature. To the extent these differences are permanent
in nature, such amounts are reclassified within the capital accounts based on
their Federal tax basis treatment; temporary differences do not require
reclassification. Dividends and distributions which exceed net investment income
and net realized capital gains for financial reporting purposes but not for tax
purposes are reported as dividends in excess of net investment income or
distributions in excess of net realized capital gains, respectively. To the
extent distributions exceed current and accumulated earnings and profits for
Federal income tax purposes, they are reported as distributions of paid-
<PAGE> 54

QUEST FOR VALUE ACCUMULATION TRUST
MONEY MARKET PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 1995

(1) ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(D) DIVIDENDS AND DISTRIBUTIONS (CONTINUED)
in-surplus or tax return of capital. At December 31, 1995, the Portfolio did not
have any permanent book-tax differences.

(E) ALLOCATION OF EXPENSES

(F) USE OF ESTIMATES

(2) INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES

(a) The investment advisory fee is payable monthly to the Adviser, and is
computed as a percentage of the Portfolio's net assets as of the close of
business each day at the annual rate of .40%.

(3) PURCHASES AND SALES OF SECURITIES

For the year ended December 31, 1995, purchases and sales/maturities of
investment securities, were $37,451,485 and $36,853,510, respectively.
<PAGE> 55

QUEST FOR VALUE ACCUMULATION TRUST
MONEY MARKET PORTFOLIO
FINANCIAL HIGHLIGHTS

FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD:

<TABLE>
<CAPTION>
YEAR ENDED SEPTEMBER 16, 1994(1)
DECEMBER 31, 1995 TO DECEMBER 31, 1994
----------------- ---------------------
<S> <C> <C>
Net asset value, beginning of period..................... $ 1.00 $ 1.00
Income from investment operations:
Net investment income.................................... 0.05 0.01
Net realized gain on investments......................... 0.00(2) --
---------- ----------
Total from investment operations....................... 0.05 0.01
---------- ----------
Dividends to shareholders:
Dividends to shareholders from net investment income..... (0.05) (0.01)
---------- ----------
Net asset value, end of period........................... $ 1.00 $ 1.00
========== ==========
Total return(3).......................................... 5.1% 4.2%(4)
========== ==========
Net assets, end of period................................ $ 4,356,084 $ 3,519,526
---------- ----------
Ratio of net operating expenses to average net
assets(6).............................................. 1.00%(5) 1.00%(4)
---------- ----------
Ratio of net investment income to average net
assets(6).............................................. 4.94%(5) 4.13%(4)
---------- ----------
</TABLE>

- ---------------

(1) Commencement of operations.

(2) Less than $.005 per share.

(3) Assumes reinvestment of all dividends and distributions.

(4) Annualized.

(5) Average net assets for the year ended December 31, 1995 were $4,119,173.

(6) During the periods presented above, the Adviser waived a portion or all of
its fees and reimbursed the Portfolio for a portion of its operating
expenses. If such waivers and reimbursements had not been in effect, the
ratio of net operating expenses to average net assets would have been 1.14%
and 2.03% and the ratio of net investment income to average net assets would
have been 4.80% and 3.10%, respectively.
<PAGE> 56

REPORT OF INDEPENDENT ACCOUNTANTS

TO THE SHAREHOLDERS AND TRUSTEES OF
QUEST FOR VALUE ACCUMULATION TRUST -- MONEY MARKET PORTFOLIO

In our opinion, the accompanying statement of assets and liabilities,
including the schedule 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 the Money Market Portfolio (one of
the portfolios constituting Quest for Value Accumulation Trust, hereafter
referred to as the "Portfolio") at December 31, 1995, the results of its
operations for the year then ended, and the changes in its net assets and the
financial highlights for the year ended December 31, 1995 and for the period
September 16, 1994 (commencement of operations) through December 31, 1994, in
conformity with generally accepted accounting principles. These financial
statements and financial highlights (hereafter referred to as "financial
statements") are the responsibility of the Portfolio's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with generally accepted auditing standards which require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at
December 31, 1995 by correspondence with the custodian, provide a reasonable
basis for the opinion expressed above.

PRICE WATERHOUSE LLP
1177 Avenue of the Americas
New York, New York 10036
February 16, 1996
<PAGE> 57

U.S. GOVERNMENT INCOME PORTFOLIO

We introduced the U.S. Government Income Portfolio on January 3, 1995, for
investors seeking favorable returns from investments in government securities.
The Portfolio, which seeks to provide a combination of high current income and
protection of capital, invests in debt obligations issued or guaranteed by the
U.S. Government and its agencies or intermediaries. These issues are considered
to carry the least credit risk. The Portfolio invests primarily in
intermediate-term securities and places a priority on maintaining a relatively
stable net asset value (NAV) per share.

The Portfolio provided a total return of 13.1% from its inception through
December 31, 1995. This compared with a total return of 14.4% for the Lehman
Brothers Intermediate Government Bond Index. Returns take into account expenses
incurred by the Portfolio, but not other charges imposed by the Variable
Accounts.

We have invested the Portfolio in a diversified group of government
securities, as we seek to generate above-average returns with below-average
risk. At the end of December, the Portfolio's assets were allocated 46% to
Treasuries, 52% to U.S. Government agency securities, 1% cash and 1% to assets
in excess of liabilities. The average maturity of the Portfolio's investments
was 3.4 years.

COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN
QUEST FOR VALUE ACCUMULATION TRUST U.S. GOVERNMENT INCOME PORTFOLIO FROM
INCEPTION (1/3/95)
THROUGH 12/31/95 AND TOTAL RETURN ON LEHMAN INTERMEDIATE GOV'T. BOND INDEX*

<TABLE>
<CAPTION>
LEHMAN IN-
U.S. GOVERN- TERMEDIATE
MEASUREMENT PERIOD MENT INCOME GOV'T BOND
(FISCAL YEAR COVERED) PORTFOLIO INDEX*
<S> <C> <C>
01/03/95 10000 10000
12/31/95 11313 11441
</TABLE>

Past performance is not predictive of future performance.
Assumes reinvestment of all dividends and distributions.
The performance graph does not reflect charges imposed by the Variable Accounts.
*with dividends.
<PAGE> 58

QUEST FOR VALUE ACCUMULATION TRUST
U.S. GOVERNMENT INCOME PORTFOLIO
SCHEDULE OF INVESTMENTS

DECEMBER 31, 1995

<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- --------- -----------
<C> <S> <C>
U. S. TREASURY NOTES -- 46.4%
$ 95,000 5.75%, 8/15/03....................................................... $ 96,143
65,000 6.375%, 8/15/02...................................................... 68,158
125,000 7.25%, 2/15/98....................................................... 129,980
35,000 7.25%, 5/15/04....................................................... 38,850
140,000 7.375%, 11/15/97..................................................... 145,294
175,000 7.75%, 12/31/99...................................................... 189,903
----------
Total U.S. Treasury Notes (cost -- $646,868)......................... $ 668,328
----------
U.S. GOVERNMENT AGENCY NOTES -- 51.5%
Federal Farm Credit Bank
$ 35,000 5.08%, 1/15/96....................................................... $ 35,000
40,000 6.50%, 4/1/96........................................................ 40,106
75,000 8.65%, 10/1/99....................................................... 82,817
Federal Home Loan Bank
60,000 6.94%, 3/14/97....................................................... 61,078
145,000 8.60%, 8/25/99....................................................... 159,613
175,000 Federal Home Loan Mortgage Corp., 6.22%, 3/24/03..................... 179,730
Federal National Mortgage Association
60,000 5.375%, 6/10/98...................................................... 60,000
25,000 8.80%, 7/25/97....................................................... 26,309
20,000 9.20%, 6/10/97....................................................... 21,056
75,000 Student Loan Marketing Association, 7.00%, 3/03/98................... 77,543
----------
Total U.S. Government Agency Notes (cost -- $722,722)................ $ 743,252
----------
Total Investments (A) (cost -- $1,369,590)..................... 97.9% $1,411,580
Other Assets in Excess of Other Liabilities.................... 2.1 30,878
----- -----------
Total Net Assets............................................... 100.0% $1,442,458
===== =========
</TABLE>

- ---------------

(A) Aggregate gross unrealized appreciation for securities in which there is an
excess of value over tax cost is $41,990, aggregate gross unrealized
depreciation for securities in which there is an excess of tax cost over
value is $0, and net unrealized appreciation for Federal income tax purposes
is $41,990. Federal income tax basis of portfolio securities is
substantially the same as for financial reporting purposes.

See accompanying notes to financial statements.
<PAGE> 59

QUEST FOR VALUE ACCUMULATION TRUST
U.S. GOVERNMENT INCOME PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES

DECEMBER 31, 1995

<TABLE>
<S> <C>
ASSETS
Investments, at value (cost -- $1,369,590)....................................... $1,411,580
Cash............................................................................. 11,231
Receivable from fund shares sold................................................. 2,400
Interest receivable.............................................................. 30,127
Receivable from Adviser.......................................................... 552
Other assets..................................................................... 113
----------
Total Assets................................................................... 1,456,003
----------
LIABILITIES
Payable for fund shares redeemed................................................. 23
Dividends payable................................................................ 611
Other payables and accrued expenses.............................................. 12,911
----------
Total Liabilities.............................................................. 13,545
----------
NET ASSETS
Par value ($.01 per share)....................................................... 1,358
Paid-in-surplus.................................................................. 1,399,110
Net unrealized appreciation on investments....................................... 41,990
----------
Total Net Assets............................................................... $1,442,458
==========
Fund shares outstanding.......................................................... 135,799
----------
Net asset value per share........................................................ $ 10.62
==========
</TABLE>

See accompanying notes to financial statements.
<PAGE> 60

QUEST FOR VALUE ACCUMULATION TRUST
U.S. GOVERNMENT INCOME PORTFOLIO
STATEMENT OF OPERATIONS

FOR THE PERIOD JANUARY 3, 1995 (COMMENCEMENT OF OPERATIONS) TO DECEMBER 31, 1995

<TABLE>
<S> <C>
INVESTMENT INCOME
Interest......................................................................... $52,801
--------
OPERATING EXPENSES
Investment advisory fee (note 2a)................................................ 4,873
Custodian fees................................................................... 12,078
Auditing, consulting and tax return preparation fees............................. 8,452
Transfer and dividend disbursing agent fees...................................... 8,260
Legal fees....................................................................... 2,079
Reports and notices to shareholders.............................................. 722
Miscellaneous.................................................................... 1,934
--------
Total operating expenses...................................................... 38,398
Less: Investment advisory fee waived and expenses reimbursed (note 2a)........ (32,307)
--------
Net operating expenses................................................... 6,091
--------
Net investment income.................................................... 46,710
--------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS - NET
Net realized gain on investments................................................... 7,795
Net unrealized appreciation on investments......................................... 41,990
--------
Net realized gain and unrealized appreciation on investments............. 49,785
--------
Net increase in net assets resulting from operations..................... $96,495
========
</TABLE>

See accompanying notes to financial statements.
<PAGE> 61

QUEST FOR VALUE ACCUMULATION TRUST
U.S. GOVERNMENT INCOME PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
JANUARY 3, 1995(1)
TO DECEMBER 31, 1995
--------------------
<S> <C>
OPERATIONS
Net investment income...................................................... $ 46,710
Net realized gain on investments........................................... 7,795
Net unrealized appreciation on investments................................. 41,990
----------
Net increase in net assets resulting from operations.................. 96,495
----------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Net investment income...................................................... (46,710)
Net realized gains......................................................... (7,795)
----------
Total dividends and distributions to shareholders..................... (54,505)
----------
FUND SHARE TRANSACTIONS
Net proceeds from sales.................................................... 1,442,074
Reinvestment of dividends and distributions................................ 53,894
Cost of shares redeemed.................................................... (95,500)
----------
Net increase in net assets from fund share transactions............... 1,400,468
----------
Total increase in net assets..................................... 1,442,458
NET ASSETS
Beginning of period........................................................ 0
----------
End of period.............................................................. $1,442,458
==========
SHARES ISSUED AND REDEEMED
Issued..................................................................... 139,749
Issued in reinvestment of dividends and distributions...................... 5,140
Redeemed................................................................... (9,090)
----------
Net increase.......................................................... 135,799
==========
</TABLE>

- ---------------

(1) Commencement of operations.

See accompanying notes to financial statements.
<PAGE> 62

QUEST FOR VALUE ACCUMULATION TRUST
U.S. GOVERNMENT INCOME PORTFOLIO
NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 1995

(1) ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

Quest for Value Accumulation Trust (the "Trust") was organized on May 12,
1994 as a Massachusetts business trust and is registered under the Investment
Company Act of 1940, as amended, as a diversified, open-end management
investment company. The Trust is authorized to issue an unlimited number of
seven classes of shares of beneficial interest at $.01 par value; the Equity
Portfolio, the Small Cap Portfolio, the Global Equity Portfolio, the Managed
Portfolio, the Bond Portfolio, the U. S. Government Income Portfolio and the
Money Market Portfolio. OpCap Advisors (formerly called Quest for Value
Advisors; the "Adviser"), a majority-owned (99%) subsidiary of Oppenheimer
Capital, serves as the Trust's investment adviser. The U.S. Government Income
Portfolio (the "Portfolio") one of the Trust's seven portfolios, commenced
operations on January 3, 1995. The following is a summary of significant
accounting policies consistently followed by the Portfolio in the preparation of
its financial statements:

(A) VALUATION OF INVESTMENTS

(B) FEDERAL INCOME TAXES

Security transactions are accounted for on the trade date. In determining
the gain or loss from the sale of securities, the cost of securities sold has
been determined on the basis of identified cost. Interest income is accrued as
earned. Discounts or premiums on debt securities purchased are accreted or
amortized 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.
Distributions from net realized capital gains, if any, are declared and paid at
least annually.

The Portfolio records dividends and distributions to its shareholders on
the ex-dividend date. The amount of dividends and distributions from net
investment income and net realized capital gains are determined in accordance
with Federal income tax regulations, which may differ from generally accepted
accounting principles. These "book-tax" differences are either considered
temporary or permanent in nature. To the extent these differences are permanent
in nature, such amounts are reclassified within the capital accounts based on
their Federal tax-basis treatment: temporary differences do not require
reclassification. Dividends and distributions which exceed net investment income
and net realized capital gains for financial reporting purposes but not for tax
purposes are reported as dividends in excess of net investment income or
distributions
<PAGE> 63

QUEST FOR VALUE ACCUMULATION TRUST
U.S. GOVERNMENT INCOME PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 1995

(1) ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(D) DIVIDENDS AND DISTRIBUTIONS (CONTINUED)
in excess of net realized capital gains, respectively. To the extent
distributions exceed current and accumulated earnings and profits for Federal
income tax purposes, they are reported as distributions of paid-in-surplus or
tax return of capital. At December 31, 1995, the Portfolio did not have any
permanent book-tax differences.

(E) ALLOCATION OF EXPENSES

(F) USE OF ESTIMATES

(2) INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES

(a) The investment advisory fee is payable monthly to the Adviser, and is
computed as a percentage of the Portfolio's net assets as of the close of
business each day at the annual rate of .60%.

The Adviser has agreed to waive that portion of the advisory fee and to
reimburse any necessary expenses to limit operating expenses of the Portfolio to
.75% of average daily net assets on an annual basis through at least December
31, 1995.

(3) PURCHASES AND SALES OF SECURITIES

For the period January 3, 1995 (commencement of operations) to December 31,
1995, purchases and sales of investment securities, other than short-term
securities, were $1,827,604 and $465,316, respectively.
<PAGE> 64

QUEST FOR VALUE ACCUMULATION TRUST
U.S. GOVERNMENT INCOME PORTFOLIO
FINANCIAL HIGHLIGHTS

FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD:

<TABLE>
<CAPTION>
JANUARY 3, 1995 (1)
TO DECEMBER 31, 1995
--------------------
<S> <C>
Net asset value, beginning of period....................................... $ 10.00
Income from investment operations:
Net investment income...................................................... 0.60
Net realized and unrealized gain on investments............................ 0.68
----------
Total from investment operations......................................... 1.28
----------
Dividends and distributions to shareholders:
Dividends to shareholders from net investment income....................... (0.60)
Distributions to shareholders from net realized capital gains.............. (0.06)
----------
Total dividends and distributions........................................ (0.66)
----------
Net asset value, end of period............................................. $ 10.62
==========
Total return............................................................... 13.1% (2)
==========
Net assets, end of period.................................................. $1,442,458
----------
Ratio of net operating expenses to average net assets...................... 0.75% (3,4,5)
----------
Ratio of net investment income to average net assets....................... 5.75% (3,4,5)
----------
Portfolio turnover......................................................... 65%
----------
</TABLE>

- ---------------

(1) Commencement of operations.

(2) Assumes reinvestment of all dividends and distributions.

(3) Annualized.

(4) Average net assets for the period January 3, 1995 (commencement of
operations) to December 31, 1995 were $816,660.

(5) During the period presented above, the Adviser waived its fees and
reimbursed the Portfolio for a portion of its operating expenses. If such
waivers and reimbursements had not been in effect, the ratio of net
operating expenses to average net assets and the ratio of net investment
income to average net assets would have been 4.73% and 1.77%, respectively.
<PAGE> 65

REPORT OF INDEPENDENT ACCOUNTANTS

TO THE SHAREHOLDERS AND TRUSTEES OF
QUEST FOR VALUE ACCUMULATION TRUST - U.S. GOVERNMENT INCOME PORTFOLIO

In our opinion, the accompanying statement of assets and liabilities,
including the schedule 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 the U.S. Government Income
Portfolio (one of the portfolios constituting Quest for Value Accumulation
Trust, hereafter referred to as the "Portfolio") at December 31, 1995, and the
results of its operations, the changes in its net assets and the financial
highlights for the period January 3, 1995 (commencement of operations) through
December 31, 1995, in conformity with generally accepted accounting principles.
These financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Portfolio's management;
our responsibility is to express an opinion on these financial statements based
on our audit. We conducted our audit of these financial statements in accordance
with generally accepted auditing standards which require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audit, which included confirmation of securities at December
31, 1995 by correspondence with the custodian, provides a reasonable basis for
the opinion expressed above.

PRICE WATERHOUSE LLP
1177 Avenue of the Americas
New York, New York 10036
February 16, 1996
<PAGE> 66

GLOBAL EQUITY PORTFOLIO

The Portfolio got off to a strong start, providing a total return of 18.9%
in the 10 months from its inception on March 1, 1995 through December 31, 1995.
This return significantly exceeded the total return of 12.2% in U.S. dollars on
Morgan Stanley International's World Stock Index. The return of the Portfolio
takes into account the expenses incurred by the Portfolio, but does not include
other charges imposed by the Variable Accounts.

We introduced the Global Equity Portfolio in recognition that investors'
horizons are no longer limited to the United States. We view global
diversification as a prudent tool for controlling risk and capitalizing on
investment opportunity wherever it may exist. The Global Equity Portfolio seeks
long-term growth by investing in a diversified portfolio of high-quality foreign
and domestic stocks. Because of our disciplined value approach, we believe the
Portfolio seeks to offer a relatively low-risk way to participate in global
markets.

As of December 31, 1995, the Portfolio owned the stocks of 90 companies in
19 countries. The Portfolio's net assets were allocated 38% to international
stocks and securities convertible into such stocks, 30% to U.S. stocks and 32%
to foreign and domestic cash and cash equivalents. Internationally, the
Portfolio's largest investment positions were in Japan, Sweden, Germany and the
United Kingdom. We significantly increased the Portfolio's holdings of Japanese
stocks in the second half of 1995. Our studies show that 36% of Japanese
companies are selling at less than 12 times cash flow, versus an average of
approximately 10 times cash flow for the U.S. market as measured by the S&P 500.
Moreover, with Japanese long bonds now yielding only about 3%, the gap between
bond and dividend yields in Japan has narrowed to approximately 100 basis
points. We believe many quality Japanese stocks are unusually attractive in this
light.

Among individual stocks, the largest international holdings as of December
31, 1995 were Mitsubishi Bank, Ltd. (convertible securities), a Japanese
commercial bank and provider of financial services; Kyocera Corp., a Japanese
ceramics maker and telecommunications company; Oy Nokia AB, the Finnish
manufacturer of equipment for cellular telephones; Fuji Photo Film Co., a
Japanese manufacturer of photographic materials; and Wacoal Corp., a Japanese
textile manufacturer. The Portfolio's largest U.S. equity holdings were
McDonnell Douglas Corp., the largest U.S. manufacturer of military aircraft and
an important competitor in commercial aircraft; Federal Home Loan Mortgage Corp.
(Freddie Mac), the second largest insurer of home mortgages; Becton, Dickinson &
Co., a worldwide producer of medical products and diagnostic test systems;
Harrah's Entertainment, Inc., a leading casino company; and Citicorp, a major
bank.

COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN
QUEST FOR VALUE ACCUMULATION TRUST GLOBAL EQUITY PORTFOLIO FROM INCEPTION
(3/1/95)
THROUGH 12/31/95 AND TOTAL RETURN ON MORGAN STANLEY INT'L. WORLD STOCK INDEX*

<TABLE>
<CAPTION>
MORGAN
GLOBAL EQ- STANLEY INT'L
MEASUREMENT PERIOD UITY WORLD STOCK
(FISCAL YEAR COVERED) PORTFOLIO INDEX*
<S> <C> <C>
03/01/95 10000 10000
12/31/95 11886 11225
</TABLE>

QUEST FOR VALUE ACCUMULATION TRUST
GLOBAL EQUITY FUND
SCHEDULE OF INVESTMENTS

DECEMBER 31, 1995

<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
--------- ----------
<C> <S> <C>
CONVERTIBLE CORPORATE NOTES - 2.5%
HONG KONG - .7%
BANKING
$ 20,000 Bangkok Bank Public Co., 3.25%, 3/3/04................................ $ 21,200
-------
JAPAN - 1.8%
MISCELLANEOUS FINANCIAL SERVICES
45,000 MBL International Finance Bermuda, 3.00%, 11/30/02.................... 52,875
-------
Total Convertible Corporate Notes (cost-$67,201)...................... $ 74,075
-------
</TABLE>

<TABLE>
<CAPTION>
SHARES
---------
<C> <S> <C>
COMMON STOCKS - 65.0%
AUSTRALIA - .6%
RETAIL
10,500 David Jones Ltd.*..................................................... $ 15,999
-------
AUSTRIA - .7%
ELECTRONICS - .5%
84 Austria Mikro Systeme International AG................................ 13,627
-------
TRANSPORTATION - .2%
100 Flughafen Wien AG..................................................... 6,747
-------
Total Austrian Common Stocks.......................................... 20,374
-------
FINLAND - 1.7%
DRUGS & MEDICAL PRODUCTS - .3%
2,000 Oy Tamro AB........................................................... 8,783
-------
RETAIL - .4%
200 Oy Stockmann AB....................................................... 10,438
-------
TELECOMMUNICATIONS - 1.0%
750 Oy Nokia AB........................................................... 29,659
-------
Total Finnish Common Stocks........................................... 48,880
-------
FRANCE - 1.5%
ELECTRONICS - .2%
200 Schneider SA.......................................................... 6,837
-------
ENERGY - .5%
214 Total SA.............................................................. 14,443
-------
MANUFACTURING - .4%
310 Michelin (CGDE)....................................................... 12,363
-------
</TABLE>
<PAGE> 68

QUEST FOR VALUE ACCUMULATION TRUST
GLOBAL EQUITY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)

DECEMBER 31, 1995

<TABLE>
<CAPTION>
SHARES VALUE
--------- ----------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
FRANCE (CONTINUED)
POWER/UTILITIES - .4%
100 Compagnie Generale des Eaux........................................... $ 9,984
----------
Total French Common Stocks............................................ 43,627
----------
GERMANY - 2.9%
COMPUTER SERVICES - .9%
165 SAP AG................................................................ 25,593
----------
CONSUMER PRODUCTS - .7%
400 Adidas AG*............................................................ 21,164
----------
DRUGS & MEDICAL PRODUCTS - 1.3%
45 Gehe AG............................................................... 22,288
240 Schering AG........................................................... 15,899
----------
38,187
----------
Total German Common Stocks............................................ 84,944
----------
HONG KONG - .8%
CONGLOMERATES - .3%
25,000 C.P. Pokphand Co. .................................................... 10,023
----------
REAL ESTATE - .5%
7,000 Hong Kong Land Holdings Ltd. ......................................... 12,950
----------
Total Hong Kong Common Stocks......................................... 22,973
----------
HUNGARY - .1%
DRUGS & MEDICAL PRODUCTS
100 Gedeon Richter Ltd., GDR*............................................. 1,900
----------
ITALY - 1.5%
CONSUMER PRODUCTS - .4%
1,400 Bulgari S.p.A.*....................................................... 11,941
----------
TELECOMMUNICATIONS - .9%
11,500 Telecom Italia S.p.A.................................................. 14,063
11,500 Telecom Italia Mobile S.p.A.*......................................... 12,093
----------
26,156
----------
TEXTILES/APPAREL - .2%
1,000 Marzotto & Figli S.p.A................................................ 5,976
----------
Total Italian Common Stocks........................................... 44,073
----------
JAPAN - 12.8%
AEROSPACE/DEFENSE - .8%
3,000 Mitsubishi Heavy Industries, Inc. .................................... 23,913
----------
</TABLE>
<PAGE> 69

QUEST FOR VALUE ACCUMULATION TRUST
GLOBAL EQUITY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)

DECEMBER 31, 1995

<TABLE>
<CAPTION>
SHARES VALUE
--------- ----------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
JAPAN (CONTINUED)
BANKING - .9%
3,000 Daiwa Bank Ltd. ...................................................... $ 24,262
----------
BUILDING & CONSTRUCTION - 1.0%
3,000 Kitano Construction Corp. ............................................ 19,206
1,000 Maeda Corp............................................................ 9,782
----------
28,988
----------
CHEMICALS - 1.7%
1,000 Fuji Photo Film Co. .................................................. 28,862
1,000 Shin-Etsu Chemical Co. ............................................... 20,726
----------
49,588
----------
DRUGS & MEDICAL PRODUCTS - 1.5%
1,000 Sankyo Co., Ltd. ..................................................... 22,470
1,000 Yamanouchi Pharmaceutical............................................. 21,501
----------
43,971
----------
ELECTRONICS - 2.0%
1,000 Hitachi Koki.......................................................... 9,065
200 Kyocera Corp. ........................................................ 29,850
1,000 Nippon Electric Glass Co. Ltd. ....................................... 18,983
----------
57,898
----------
ENTERTAINMENT - .9%
1,000 Heiwa Corp. .......................................................... 26,053
----------
FOOD SERVICES - .9%
100 Ito Yokado Co. Ltd. .................................................. 24,613
----------
HEALTH & HOSPITALS - .7%
1,000 SRL, Inc. ............................................................ 21,114
----------
INSURANCE - .6%
3,000 Fuji Fire & Marine Insurance.......................................... 15,806
----------
MACHINERY/ENGINEERING - .9%
2,000 Kyudenko Co. Ltd. .................................................... 26,344
----------
TEXTILES/APPAREL - .9%
2,000 Wacoal Corp. ......................................................... 27,119
----------
Total Japanese Common Stocks.......................................... 369,669
----------
MALAYSIA - .8%
BUILDING & CONSTRUCTION - .3%
5,000 Kim Hin Industry Bhd. ................................................ 9,292
----------
CONGLOMERATES - .5%
5,000 Technology Resources Industries Bhd.*................................. 14,766
----------
Total Malaysian Common Stocks......................................... 24,058
----------
</TABLE>
<PAGE> 70

QUEST FOR VALUE ACCUMULATION TRUST
GLOBAL EQUITY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)

DECEMBER 31, 1995

<TABLE>
<CAPTION>
SHARES VALUE
--------- ----------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
NETHERLANDS - 1.6%
BUILDING & CONSTRUCTION - .3%
300 Kondor Wessells Groep NV.............................................. $ 8,899
----------
IMPORTING/EXPORTING - .5%
250 Hagemeyer NV.......................................................... 13,055
----------
MISCELLANEOUS FINANCIAL SERVICES - .2%
100 Internationale Nederlanden Groep NV................................... 6,680
----------
PRINTING & PUBLISHING - .6%
125 Ver Ned Uitgevers..................................................... 17,161
----------
Total Netherlands Common Stocks....................................... 45,795
----------
NORWAY - .5%
BANKING
2,800 Banking Fokus Bank AS*................................................ 15,118
----------
SOUTH KOREA - 1.2%
ELECTRONICS - .6%
300 Samsung Electronics Ltd. ............................................. 18,000
----------
METALS/MINING - .6%
800 Pohang Iron & Steel Co. Ltd. ADR...................................... 17,500
----------
Total South Korean Common Stocks...................................... 35,500
----------
SPAIN - .5%
ENERGY
400 Repsol SA............................................................. 13,108
----------
SWEDEN - 3.0%
BANKING - .7%
1,250 Nordbanken AB*........................................................ 21,650
----------
DRUGS & MEDICAL PRODUCTS - .3%
200 ASTRA AB.............................................................. 7,982
----------
MACHINERY/ENGINEERING - 1.1%
1,700 Atlas Copco AB........................................................ 26,116
300 Kalmar Industries AB.................................................. 4,970
----------
31,086
----------
PAPER PRODUCTS - .4%
500 AssiDoman AB.......................................................... 10,844
----------
POWER/UTILITIES - .5%
165 ASEA AB............................................................... 16,029
----------
Total Swedish Common Stocks........................................... 87,591
----------
</TABLE>
<PAGE> 71

QUEST FOR VALUE ACCUMULATION TRUST
GLOBAL EQUITY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)

DECEMBER 31, 1995

<TABLE>
<CAPTION>
SHARES VALUE
--------- ----------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
SWITZERLAND - 1.5%
BANKING - .6%
30 Bil GT Gruppe AG...................................................... $ 17,685
----------
BUILDING & CONSTRUCTION - .5%
20 Holderbank Financiere Glaris AG....................................... 15,345
----------
MANUFACTURING - .4%
5 Sig Schweizerische Industrie - Gesellschaft Holding AG................ 10,446
----------
Total Swiss Common Stocks............................................. 43,476
----------
TAIWAN - .6%
TELECOMMUNICATIONS
2,400 Total Access Communication Public Co. Ltd.*........................... 15,600
----------
UNITED KINGDOM - 2.8%
BUILDING & CONSTRUCTION - .4%
1,700 Wolseley PLC.......................................................... 11,907
----------
COMPUTER SERVICES - .5%
4,500 Amstrad PLC........................................................... 13,698
----------
FOOD SERVICES - .6%
3,000 Booker PLC............................................................ 16,913
----------
RETAIL - 1.3%
4,600 Argyll Group PLC...................................................... 24,289
2,100 Dixon Group PLC....................................................... 14,481
----------
38,770
----------
Total United Kingdom Common Stocks.................................... 81,288
----------
UNITED STATES - 29.9%
AEROSPACE/DEFENSE - 3.3%
200 Lockheed Martin Corp. ................................................ 15,800
400 Loral Corp. .......................................................... 14,150
700 McDonnell Douglas Corp. .............................................. 64,400
----------
94,350
----------
BANKING - 4.0%
700 Citicorp.............................................................. 47,075
500 First Bank Systems, Inc. ............................................. 24,812
200 Wells Fargo & Co. .................................................... 43,200
----------
115,087
----------
</TABLE>
<PAGE> 72

QUEST FOR VALUE ACCUMULATION TRUST
GLOBAL EQUITY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)

DECEMBER 31, 1995

<TABLE>
<CAPTION>
SHARES VALUE
--------- ----------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
UNITED STATES (CONTINUED)
CHEMICALS - 2.9%
600 du Pont (E.I.) de Nemours & Co. ...................................... $ 41,925
300 Hercules, Inc. ....................................................... 16,913
200 Monsanto Co. ......................................................... 24,500
----------
83,338
----------
CONSUMER PRODUCTS - 1.3%
1,300 Reebok International Ltd. ............................................ 36,725
----------
DRUGS & MEDICAL PRODUCTS - 1.8%
700 Becton, Dickinson & Co. .............................................. 52,500
----------
ENERGY - 1.4%
800 Tenneco, Inc. ........................................................ 39,700
----------
ENTERTAINMENT - 1.8%
2,000 Harrah's Entertainment, Inc.*......................................... 48,500
100 ITT Corp.*............................................................ 5,300
----------
53,800
----------
INSURANCE - 1.0%
400 EXEL Ltd. ............................................................ 24,400
100 ITT Hartford Group, Inc.*............................................. 4,838
----------
29,238
----------
MACHINERY/ENGINEERING - 1.6%
1,000 Case Corp. ........................................................... 45,750
----------
MANUFACTURING - 1.2%
100 ITT Industries, Inc. ................................................. 2,400
2,200 Shaw Industries, Inc. ................................................ 32,450
----------
34,850
----------
METALS/MINING - 1.6%
1,500 Freeport McMoRan Copper & Gold (Class B).............................. 42,188
116 Freeport McMoRan, Inc. ............................................... 4,292
----------
46,480
----------
MISCELLANEOUS FINANCIAL SERVICES - 3.0%
700 American Express Co. ................................................. 28,963
700 Federal Home Loan Mortgage Corp. ..................................... 58,450
----------
87,413
----------
PAPER PRODUCTS - 2.6%
900 Champion International, Inc. ......................................... 37,800
468 Kimberly-Clark Corp. ................................................. 38,727
----------
76,527
----------
TECHNOLOGY - 1.2%
600 Intel Corp. .......................................................... 34,050
----------
</TABLE>
<PAGE> 73

QUEST FOR VALUE ACCUMULATION TRUST
GLOBAL EQUITY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)

DECEMBER 31, 1995

<TABLE>
<CAPTION>
SHARES VALUE
--------- ----------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
UNITED STATES (CONTINUED)
TELECOMMUNICATIONS - .7%
500 Sprint Corp. ......................................................... $ 19,937
----------
TRANSPORTATION - .5%
200 AMR Corp.*............................................................ 14,850
----------
Total United States Common Stocks..................................... 864,595
----------
Total Common Stocks (cost - $1,742,996)............................... $1,878,568
----------
Total Investments(A) (cost - $1,810,197)...................... 67.5% $1,952,643
Other Assets in Excess of Other Liabilities................... 32.5 938,678
----- ----------
Total Net Assets.............................................. 100.0% $2,891,321
===== =========
</TABLE>

- ---------------

* Non-income producing security.

(A) Aggregate gross unrealized appreciation for securities in which there is an
excess of value over tax cost is $212,343, aggregate gross unrealized
depreciation for securities in which there is an excess of tax cost over
value is $69,897, and net unrealized appreciation for Federal income tax
purposes is $142,446. Federal income tax basis of portfolio securities is
substantially the same as for financial reporting purposes.

See accompanying notes to financial statements.
<PAGE> 74

QUEST FOR VALUE ACCUMULATION TRUST
GLOBAL EQUITY PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES

DECEMBER 31, 1995

<TABLE>
<S> <C>
ASSETS
Investments, at value (cost - $1,810,197)...................................... $1,952,643
Cash........................................................................... 921,392
Cash held in foreign currencies (cost - $13,603)............................... 13,552
Receivable from investments sold............................................... 8,376
Receivable from fund shares sold............................................... 42,011
Dividends receivable........................................................... 2,312
Interest receivable............................................................ 618
Withholding taxes reclaimable.................................................. 934
Receivable from Adviser........................................................ 453
Other assets................................................................... 113
----------
Total Assets................................................................. 2,942,404
----------
LIABILITIES
Payable for investments purchased.............................................. 35,096
Withholding taxes payable...................................................... 153
Other payables and accrued expenses............................................ 15,834
----------
Total Liabilities............................................................ 51,083
----------
NET ASSETS
Par value ($.01 per share)..................................................... 2,489
Paid-in-surplus................................................................ 2,745,187
Undistributed net investment income............................................ 4,127
Net realized loss on foreign currency transactions............................. (2,877)
Net unrealized appreciation on investments and translation of other assets and
liabilities denominated in foreign currencies................................ 142,395
----------
Total Net Assets............................................................. $2,891,321
==========
Fund shares outstanding........................................................ 248,946
----------
Net asset value per share...................................................... $ 11.61
==========
</TABLE>

See accompanying notes to financial statements.
<PAGE> 75

QUEST FOR VALUE ACCUMULATION TRUST
GLOBAL EQUITY PORTFOLIO
STATEMENT OF OPERATIONS

FOR THE PERIOD MARCH 1, 1995 (COMMENCEMENT OF OPERATIONS) TO DECEMBER 31, 1995

<TABLE>
<S> <C>
INVESTMENT INCOME
Dividends (net of foreign withholding taxes of $1,439)........................ $ 18,113
Interest...................................................................... 9,225
------
Total investment income.................................................... 27,338
------
OPERATING EXPENSES
Investment advisory fee (note 2a)............................................. 9,022
Custodian fees................................................................ 14,416
Auditing, consulting and tax return preparation fees.......................... 11,308
Transfer and dividend disbursing agent fees................................... 7,518
Legal fees.................................................................... 2,143
Reports and notices to shareholders........................................... 701
Miscellaneous................................................................. 2,291
------
Total operating expenses................................................... 47,399
Less: Investment advisory fee waived and expenses reimbursed (note 2a)..... (32,362)
------
Net operating expenses................................................ 15,037
------
Net investment income................................................. 12,301
------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS - NET
Net realized gain on investments................................................ 57,143
Net realized loss on foreign currency transactions.............................. (2,877)
Net unrealized appreciation on investments and translation of other assets and
liabilities denominated in foreign currencies................................. 142,395
------
Net realized gain (loss) and unrealized appreciation on investments
and translation
of other assets and liabilities denominated in foreign currencies... 196,661
------
Net increase in net assets resulting from operations.................. $208,962
======
</TABLE>

See accompanying notes to financial statements.
<PAGE> 76

QUEST FOR VALUE ACCUMULATION TRUST
GLOBAL EQUITY PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
MARCH 1, 1995 (1)
TO DECEMBER 31, 1995
--------------------
<S> <C>
OPERATIONS
Net investment income...................................................... $ 12,301
Net realized gain on investments........................................... 57,143
Net realized loss on foreign currency transactions......................... (2,877)
Net unrealized appreciation on investments and translation of other assets
and liabilities denominated in foreign currencies........................ 142,395
----------
Net increase in net assets resulting from operations.................. 208,962
----------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Net investment income...................................................... (8,174)
Net realized gains on investments.......................................... (57,143)
----------
Total dividends and distributions to shareholders..................... (65,317)
----------
FUND SHARE TRANSACTIONS
Net proceeds from sales.................................................... 2,683,554
Reinvestment of dividends and distributions................................ 65,317
Cost of shares redeemed.................................................... (1,195)
----------
Net increase in net assets from fund share transactions............... 2,747,676
----------
Total increase in net assets..................................... 2,891,321
NET ASSETS
Beginning of period........................................................ 0
----------
End of period (including undistributed net investment income of $4,127).... $2,891,321
==========
SHARES ISSUED AND REDEEMED
Issued..................................................................... 243,412
Issued in reinvestment of dividends and distributions...................... 5,636
Redeemed................................................................... (102)
----------
Net increase.......................................................... 248,946
==========
</TABLE>

- ---------------

(1) Commencement of operations.

See accompanying notes to financial statements.
<PAGE> 77

QUEST FOR VALUE ACCUMULATION TRUST
GLOBAL EQUITY PORTFOLIO
NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 1995

(1) ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

Quest for Value Accumulation Trust (the "Trust") was organized on May 12,
1994 as a Massachusetts business trust and is registered under the Investment
Company Act of 1940, as amended, as a diversified, open-end management
investment company. The Trust is authorized to issue an unlimited number of
seven classes of shares of beneficial interest at $.01 par value: the Equity
Portfolio, the Small Cap Portfolio, the Global Equity Portfolio, the Managed
Portfolio, the Bond Portfolio, the U. S. Government Income Portfolio and the
Money Market Portfolio. OpCap Advisors (formerly called Quest for Value
Advisors; the "Adviser"), a majority-owned (99%) subsidiary of Oppenheimer
Capital, serves as the Trust's investment adviser. The Global Equity Portfolio
(the "Portfolio"), one of the Trust's seven portfolios, commenced operations on
March 1, 1995. The following is a summary of significant accounting policies
consistently followed by the Portfolio in the preparation of its financial
statements:

(A) VALUATION OF INVESTMENTS

Investment securities listed on a U.S or foreign stock exchange or traded
in the over-the-counter National Market System are valued each business day at
the last reported sale price; if there are no such reported sales, the
securities are valued at their last quoted bid price. Other securities traded
over-the-counter and not part of the National Market System are valued at the
last quoted bid price. Short-term debt securities having a remaining maturity of
more than sixty days are valued on a "marked-to-market" basis, that is, at
prices based upon market quotations for securities of similar type, yield,
quality and maturity. Short-term debt securities having a remaining maturity of
sixty days or less are valued at amortized cost, which approximates market
value. Any securities or other assets for which market quotations are not
readily available are valued at their fair value as determined in good faith by
the Board of Trustees. Investments in countries in which the Portfolio may
invest may involve certain considerations and risks not typically associated
with domestic investments as a result of, among others, the possibility of
future political and economic developments and the level of governmental
supervision and regulation of foreign securities markets.

(B) FEDERAL INCOME TAXES

Security transactions are accounted for on the trade date. In determining
the gain or loss from the sale of securities, the cost of securities sold has
been determined on the basis of identified cost. Dividend income and other
distributions are recorded on the ex-dividend date, except certain dividends or
other distributions from foreign securities which are recorded as soon as the
information is available after the ex-dividend date. Interest income is accrued
as earned.

(D) FOREIGN CURRENCY TRANSLATION

The books and records of the Portfolio are maintained in U.S. dollars as
follows: (1) the foreign currency market value of investment securities, other
assets and liabilities stated in foreign currencies are translated at the
exchange rate at the end of the period; and (2) purchases, sales, income and
expenses are translated at the rate of exchange prevailing on the respective
dates of such transactions. The resultant exchange gains and losses are included
in the Portfolio's Statement of Operations. Since the net assets of the
Portfolio are presented at the foreign exchange rates and market prices at the
close of the period, the Portfolio does not isolate that portion of the results
of operations arising as a result of changes in the exchange rates from
fluctuations arising from changes in the market price of securities.
<PAGE> 78

QUEST FOR VALUE ACCUMULATION TRUST
GLOBAL EQUITY PORTFOLIO
NOTES TO FINANCIAL (CONTINUED)

DECEMBER 31, 1995

(1) ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(E) DIVIDENDS AND DISTRIBUTIONS

Dividends and distributions to shareholders from net investment income and
net realized capital gains, if any, are declared and paid at least annually.

The Portfolio records dividends and distributions to its shareholders on
the ex-dividend date. The amount of dividends and distributions from net
investment income and net realized capital gains are determined in accordance
with Federal income tax regulations, which may differ from generally accepted
accounting principles. These "book-tax" differences are either considered
temporary or permanent in nature. To the extent these differences are permanent
in nature, such amounts are reclassified within the capital accounts based on
their Federal tax-basis treatment: temporary differences do not require
reclassification. Dividends and distributions which exceed net investment income
and net realized capital gains for financial reporting purposes but not for tax
purposes are reported as dividends in excess of net investment income or
distributions in excess of net realized capital gains, respectively. To the
extent distributions exceed current and accumulated earnings and profits for
Federal income tax purposes, they are reported as distributions of paid-
in-surplus or tax return of capital. As December 31, 1995, the Portfolio did not
have any permanent book-tax differences.

(F) ALLOCATION OF EXPENSES

(G) USE OF ESTIMATES

(2) INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES

The Adviser has agreed to waive that portion of the advisory fee and to
reimburse any necessary expenses to limit operating expenses of the Portfolio to
1.25% of average daily net assets on an annual basis through at least December
31, 1995.

(b) Total brokerage commissions paid by the Portfolio for the period March
1, 1995 (commencement of operations) to December 31, 1995, amounted to $11,614,
of which Oppenheimer & Co., Inc., an affiliate of the Adviser, received $490.

(3) PURCHASES AND SALES OF SECURITIES

For the period March 1, 1995 (commencement of operations) to December 31,
1995, purchases and sales of investment securities other than short-term
securities were $2,490,943 and $737,776, respectively.

(4) FOREIGN CURRENCY LOSS DEFERRAL

Currency losses incurred after October 31, 1995 are deemed to arise on the
first business day of the following fiscal year. Accordingly, the Portfolio
incurred and elected to defer $995 in net foreign currency losses.
<PAGE> 79

QUEST FOR VALUE ACCUMULATION TRUST
GLOBAL EQUITY PORTFOLIO
FINANCIAL HIGHLIGHTS

FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD:

<TABLE>
<CAPTION>
MARCH 1, 1995(1)
TO DECEMBER 31, 1995
--------------------
<S> <C>
Net asset value, beginning of period....................................... $ 10.00
Income from investment operations:
Net investment income...................................................... 0.05
Net realized gain and unrealized appreciation on investments and
translation of other assets and liabilities denominated in foreign
currencies............................................................... 1.83
----------
Total from investment operations......................................... 1.88
----------
Dividends and distributions to shareholders:
Dividends to shareholders from net investment income....................... (0.03)
Distributions to shareholders from net realized capital gains.............. (0.24)
----------
Total dividends and distributions........................................ (0.27)
----------
Net asset value, end of period............................................. $ 11.61
==========
Total return............................................................... 18.9% (3)
==========
Net assets, end of period.................................................. $2,891,321
----------
Ratio of net operating expenses to average net assets...................... 1.25% (2,4,5)
----------
Ratio of net investment income to average net assets....................... 1.02% (2,4,5)
----------
Portfolio turnover......................................................... 67%
----------
</TABLE>

- ---------------

(1) Commencement of operations.

(2) Annualized.

(3) Assumes reinvestment of all dividends and distributions.

(4) Average net assets for the period March 1, 1995 (commencement of operations)
to December 31, 1995 were $1,434,862.

(5) During the period presented above, the Adviser waived its fees and
reimbursed the Portfolio for a portion of its operating expenses. If such
waivers and reimbursements had not been in effect, the ratio of net
operating expenses to average net assets and the ratio of net investment
loss to average net assets would have been 3.94% and (1.67%), respectively.
<PAGE> 80

REPORT OF INDEPENDENT ACCOUNTANTS

TO THE SHAREHOLDERS AND TRUSTEES OF
QUEST FOR VALUE ACCUMULATION TRUST -- GLOBAL EQUITY PORTFOLIO

In our opinion, the accompanying statement of assets and liabilities,
including the schedule 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 the Global Equity Portfolio (one of
the portfolios constituting Quest for Value Accumulation Trust, hereafter
referred to as the "Portfolio") at December 31, 1995, and the results of its
operations, the changes in its net assets and the financial highlights for the
period March 1, 1995 (commencement of operations) through December 31, 1995, in
conformity with generally accepted accounting principles. These financial
statements and financial highlights (hereafter referred to as "financial
statements") are the responsibility of the Portfolio's management; our
responsibility is to express an opinion on these financial statements based on
our audit. We conducted our audit of these financial statements in accordance
with generally accepted auditing standards which require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audit, which included confirmation of securities at December
31, 1995 by correspondence with the custodian and brokers, provides a reasonable
basis for the opinion expressed above.

PRICE WATERHOUSE LLP
1177 Avenue of the Americas
New York, New York 10036
February 16, 1996