OCC ACCUMULATION TRUST, N-30D, 1996-09-03

OCC ACCUMULATION TRUST
N-30D, 1996-09-03

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<PAGE> 1

OCC ACCUMULATION TRUST
MANAGED BY

[OPCAP ADVISORS LOGO]

We are pleased to report on the investment activities and results of the
portfolios in the OCC Accumulation Trust (formerly Quest for Value Accumulation
Trust) for the 1996 first half, a period of generally rising stock prices and
generally declining bond prices. The financial environment during the half was
characterized by higher interest rates and investor concerns that a strong
economy might cause rates to increase further. Inflation remained low, a
positive for investors.

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

The equity portfolios in the Trust delivered positive returns in the half.
In managing these portfolios, we continued to do what we do best, which is to
invest in superior, undervalued businesses for the long-term. We stick with
quality companies until their value is reflected in the stock price, or until we
find companies that offer even better value. Because we have only limited
investments in technology stocks, we are relatively immune to the recent
volatility in these issues.

Even though the two bond portfolios had slightly negative total returns in
the first half, we weathered the declining bond market well, maintaining a
defensive posture by keeping average maturities short. Prices of shorter
maturities tend to decline less than those of longer maturities when the bond
market is weak.

NAME CHANGE

The name of the trust was changed from Quest for Value Accumulation Trust
to OCC Accumulation Trust, effective May 1, 1996. This change links the Trust
more closely with its adviser, OpCap Advisors, and the adviser's parent,
Oppenheimer Capital. 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. This name change has 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 strong performance in the 1996 first
half, providing a total return of 10.7%, exceeding the total return of 10.1%
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. The Portfolio's performance was 26th among the 41 capital
appreciation funds in Lipper's Variable Insurance Products Performance Analysis
Service Report. The Portfolio was below the median in the Lipper rankings
because of our conservative investment position, including a sizable cash
position. In addition, we purposely avoided investments in the more speculative
and volatile stocks that were in vogue during the half.

The Portfolio invests in companies that meet strict criteria, including
high cash flow, a competitive business advantage and a reasonable market
valuation. By adhering to our value approach through all market conditions, we
have delivered consistently high returns over time, with less risk.

For the 12 months ended June 30, 1996, the Portfolio provided a total
return of 24.6%, compared with 26.0% for the S&P 500. For the five years ended
June 30, 1996, the Portfolio's average annual total return of 18.0%* exceeded
the 15.7% average annual return of the S&P 500 Index. The Portfolio's five-year
performance ranked 11th among the 19 portfolios in the Lipper capital
appreciation category. The Portfolio's average annual total return from its
inception on August 1, 1988 through June 30, 1996 was 16.1%*, compared with
15.6% for the S&P 500. Returns for the Portfolio take into account expenses
incurred by the Portfolio, but not separate account charges imposed by the
insurance company.

The five stocks which contributed most to the Portfolio's performance in
the 1996 first half were Varity Corp., Citicorp, Wells Fargo & Co., EXEL Ltd.
and ACE, Ltd. With the exception of Varity Corp., each of these stocks is in the
banking, insurance or financial services category. The Portfolio's overweighting
in an eclectic group of financial stocks contributed significantly to
performance in the half. Most of these stocks have been investments of long
standing that appeared undervalued to us regardless of the interest rate
environment. While the recent rise in interest rates has created pressure on
some stocks in this group, we continue to see good value here, and our holdings
have generally performed well.

As of June 30, 1996, the Portfolio's net assets were invested 86% in common
stocks and 14% in cash and cash equivalents. Major portfolio changes during the
first half included new or increased positions in the common stocks of such
companies as ACE, Ltd., R.R. Donnelley & Sons, Mid Ocean Ltd. and Varity Corp.
Positions that were eliminated included Coltec Industries, Inc., Intel Corp.,
Prudential Reinsurance Holdings, Inc. and Temple-Inland, Inc.

The Portfolio's five largest equity positions as of June 30, 1996 were ACE,
Ltd., a Bermuda-based provider of excess directors and officers liability
insurance, representing 4.7% of the Portfolio's net assets; Varity Corp., a
highly profitable manufacturer of automotive components and other products, 3.9%
of net assets; Becton, Dickinson & Co., a worldwide producer of medical products
and diagnostic test systems, 3.8% of net assets; Citicorp, a leading bank, 3.7%
of net assets; and Federal Home Loan Mortgage Corp. (Freddie Mac), the second
largest insurer of home mortgages in the United States, 3.6% of net assets.
Major industry positions were in the insurance sector, 22.5% of net assets;
financial services, 7.9% of net assets; banking, 7.0% of net assets; aerospace
and defense, 6.7% of net assets; and manufacturing, 4.7% of net assets.

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

* Based on results of the OCC Accumulation Trust and its predecessor. On
September 16, 1994, an investment company which had commenced operations on
August 1, 1988, called Quest for Value Accumulation Trust (the "Old Trust"),
was effectively divided into two investment funds -- the Old Trust and the
present OCC 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 period prior to September 16,
1994, the performance figures for the Equity Portfolio of the Present Trust
reflect the performance of the Equity Portfolio of the Old Trust.

<PAGE> 3

SMALL CAP PORTFOLIO

The Small Cap Portfolio offers a conservative way to participate in the
huge and dynamic marketplace of common stocks of smaller companies. The
Portfolio had a total return of 8.5% in the 1996 first half, below the total
return of 10.4% with dividends included for the Russell 2000 Index, a widely
followed benchmark which includes smaller capitalization stocks. The Portfolio's
performance was 32nd among the 40 small company growth funds in Lipper's
Variable Insurance Products Performance Analysis Service Report.

The small cap market was driven for most of the half by a speculative
initial public offering environment and rising prices for technology issues. As
speculative excesses started to unwind in June, small cap prices began to
decline late in the half, and the decline accelerated in early July. Because of
our disciplined value approach and the below-average volatility of the
Portfolio, we underperformed the Russell 2000 early in the half and outperformed
in June. The market appears to be moving away from speculation toward a renewed
focus on company fundamentals, which favors our investment style. We invest in
small cap companies with shareholder-oriented managements, strong competitive
positions and high cash flow.

The Portfolio provided a total return of 18.0% in the 12 months ended June
30, 1996, compared with 23.9% for the Russell 2000. For the five years ended
June 30, 1996, the Portfolio provided an average annual total return of 15.8%*,
compared with the 17.5% average annual return for the Russell 2000 Index. The
Portfolio's five-year performance was seventh among eight funds in the Lipper
small company growth fund category. From its inception on August 1, 1988 through
June 30, 1996, the Portfolio delivered an average annual total return of 14.4%*,
exceeding the 13.2% average annual total return for the Russell Index. Returns
for the Portfolio take into account expenses incurred by the Portfolio, but not
separate account charges imposed by the insurance company.

We continue to perform the rigorous, in-depth analysis to identify quality
businesses where the value of the franchise is underpriced in the market.
Westpoint Stevens, Inc. (Class A), the Portfolio's ninth largest holding, is an
example. We like this company because of its high cash generation, strong
business franchise and reasonable valuation. Westpoint Stevens is the leading
U.S. manufacturer of sheets and towels, with strong brand names such as Martex
and Utica. It also holds an exclusive license to the Ralph Lauren brand name in
towels and sheets. The company is the low-cost producer in its industry and
continues to capture market share. Moreover, its operating profitability level
is twice that of its nearest competitor. The company generates about $3 per
share of free cash flow, which is being used to repurchase stock, make
acquisitions and reduce debt. Even though the stock was up sharply in the half,
it still trades at a modest eight times free cash flow.

Several of our portfolio companies took significant actions during the half
to increase shareholder value, confirming our investment theses. Oak Industries,
Inc., entered negotiations to purchase the stake of the largest minority
shareholder in its coaxial cable connector division. This division offers
excellent growth opportunities as cable TV systems upgrade to offer additional
channels and new services, such as cable modems for Internet access, and to
compete with new entrants into home video delivery. (Many of these new entrants
are themselves customers for Oak products.) Security Capital Pacific Trust
announced plans to spin off its extended-stay lodging business to shareholders,
unlocking its value. Similar businesses carry high valuations in the market.
Marshall Industries, Inc., authorized the repurchase of more than 5% of its
shares, which we believe to be undervalued.

As of June 30, 1996, the Portfolio's net assets were allocated 90% to
common stocks and securities convertible into common stocks and 10% to cash and
cash equivalents. During the first half of 1996, we established a new position
in United Dominion Industries, Inc. and significantly increased our investment
in SpaceLabs, Inc. Eliminations included Ralcorp Holdings and True North
Communications, Inc.

The five largest equity positions as of June 30, 1996 were Oak Industries,
Inc., with a core business of manufacturing coaxial cable connectors for the
cable television industry, representing 4.9% of the Portfolio's net assets;
EG&G, Inc., a supplier of technology products and services to manufacturers and
end users in industry and government, 4.7% of net assets; Magellan Health
Services, Inc., which operates hospitals, 4.2% of net assets; SpaceLabs, Inc., a
medical devices company, 3.9% of net assets; and Crane Co., which

<PAGE> 4

manufactures aerospace, fluid handling and controls components and vending
machines and distributes and manufactures housing-related building products,
3.5% of net assets. Major industry positions were in the electrical equipment
sector, 16.2% of net assets; insurance, 13.7% of net assets; manufacturing,
11.1% of net assets; energy, 7.2% of net assets; and health and hospitals, 5.0%
of net assets.

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

* Based on results of the OCC Accumulation Trust and its predecessor. On
September 16, 1994, an investment company which had commenced operations on
August 1, 1988, called Quest for Value Accumulation Trust (the "Old Trust"),
was effectively divided into two investment funds -- the Old Trust and the
present OCC 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 period prior to September 16,
1994, the performance figures for the Small Cap Portfolio of the Present Trust
reflect the performance of the Small Cap Portfolio of the Old Trust.

<PAGE> 5

MANAGED PORTFOLIO

The Managed Portfolio, which invests in stocks, bonds and cash equivalents,
has consistently ranked among the top funds in its category. The Portfolio
provided a total return of 8.9% in the six months ended June 30, 1996, compared
with a total return of 10.1% 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. The Portfolio's performance was sixth best
among the 70 flexible portfolio funds in Lipper's Variable Insurance Products
Performance Analysis Service Report.

This performance was achieved despite a conservative investment posture,
including a June 30 cash
position of 15% of net assets and the avoidance of investments in high-flying
speculative securities. Our investment style specifically attempts to avoid
forecasting the market or the economy. We focus on individual companies and try
to understand where their businesses are going over the next several years, not
on where the market is heading in the next quarter. We stick with good companies
until their value is reflected in the stock price -- or until we find companies
that are even better.

For the 12 months ended June 30, 1996, the Portfolio's total return of
22.2% compared with the total return of 26.0% for the S&P 500. For the five
years ended June 30, 1996, the Portfolio's average annual total return of 19.7%*
exceeded by a wide margin the 15.7% average annual total return of the S&P 500.
This five-year performance was second best among the 51 flexible portfolio funds
in the Lipper universe. From inception on August 1, 1988 through June 30, 1996,
the Portfolio delivered an average annual total return of 19.7%*, far surpassing
the 15.6% average annual total return for the S&P 500. Returns for the Portfolio
take into account expenses incurred by the Portfolio, but not separate account
charges imposed by the insurance company.

The Portfolio has achieved its superior long-term performance by investing
in profitable businesses with high cash flow -- businesses that are able to
generate wealth that compounds regardless of stock market ups and downs. These
businesses are more proprietary and less commodity-like, giving managements
greater control over results. Notwithstanding these superior business
characteristics, the stocks owned by the Portfolio have average valuations lower
than the S&P 500, indicating their relative value.

Following the April 1 merger of Wells Fargo & Co. and First Interstate
Bancorp (both of which were owned by the Portfolio), the combined position
became our largest holding. We have great expectations for the benefit of this
merger. The acquirer, Wells Fargo, will be able to realize substantial economies
of scale. In addition, it is exporting its low-cost operating systems to First
Interstate's branches.

During the half, we established a new position in Union Pacific Corp., now
the Portfolio's tenth largest holding. We like the stock because of the
company's pending merger with the Southern Pacific and the benefits that will
accrue from the combination. Four years ago, Union Pacific was the preeminent
western railroad, with the highest returns and best on-time record. However, the
competitive landscape changed, and Union Pacific came under pressure, when
Burlington Northern merged with Santa Fe Southern Pacific. We believe Union
Pacific's pending merger with Southern Pacific will reshape the landscape again,
benefiting the newly combined company. Following the merger, there will be only
two major railroads serving the western United States. We see opportunities for
the combined road to become much stronger competitively and to eliminate
duplicate overhead, thereby increasing its earnings and generating high cash
flow.

We continued to add to a number of positions, including Mattel, Inc. Mattel
is an excellent company that suffered a recent decline in the price of its stock
due to questions raised by a former employee about the accounting treatment of
certain items. We used the price decline as an opportunity to buy. Other
additions to existing positions included Federal Home Loan Mortgage Corp.
(Freddie Mac), Lockheed Martin Corp. and Tenneco, Inc. Eliminations and
reductions included such stocks as Avon Products, Inc., MAPCO, Inc., Northrop
Grumman Corp. and Reebok International, Ltd.

As of June 30, 1996, 84% of the Portfolio's net assets were invested in
common stocks and securities convertible into common stocks, 1% in Treasury
notes and corporate bonds, and 15% in cash and cash equivalents. The Portfolio's
five largest equity holdings were Wells Fargo & Co., a major bank in the western
United States, representing 7.7% of the Portfolio's net assets; Citicorp, a
leading bank, 4.9% of net assets; McDonnell Douglas Corp., the nation's largest
manufacturer of military aircraft and an important competitor

<PAGE> 6

in commercial aircraft, 4.8% of net assets; Federal Home Loan Mortgage Corp.
(Freddie Mac), the second largest insurer of home mortgages in the United
States, 4.4% of net assets; and Freeport McMoRan Copper & Gold (Class B), which
produces copper and gold at a mine in the Indonesian region of Irian Jaya, 4.1%
of net assets. Major industry positions were in the banking sector, 16.9% of the
Portfolio's net assets; financial services, 12.8% of net assets; aerospace and
defense, 8.0% of net assets; technology, 6.9% of net assets; and chemicals, 6.4%
of net assets.

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

* Based on results of the OCC Accumulation Trust and its predecessor. On
September 16, 1994, an investment company which had commenced operations on
August 1, 1988, called Quest for Value Accumulation Trust (the "Old Trust"),
was effectively divided into two investment funds -- the Old Trust and the
present OCC 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 $51,345,102 in the Present Trust. For the period prior to September 16,
1994, the performance figures for the Managed Portfolio of the Present Trust
reflect the performance of the Managed Portfolio of the Old Trust.

<PAGE> 7

BOND PORTFOLIO

The Bond Portfolio offers a convenient way to invest in a diversified group
of quality debt securities, corporate and government. In a period of declining
bond prices, it had a negative total return (dividends paid and change in net
asset value assuming the reinvestment of dividends) of 1.5% for the six months
ended June 30, 1996, compared with a negative total return of 1.2% for the
Lehman Brothers Aggregate Bond Index, a widely followed benchmark. This
performance was 21st among the 33 corporate bond funds/BBB-rated in Lipper's
Variable Insurance Products Performance Analysis Service Report.

The Portfolio delivered a positive total return of 3.3% in the 12 months
ended June 30, 1996, compared with 5.0% for the Lehman Index. In the five years
ended June 30, 1996, the Portfolio produced an average annual total return of
7.0%*, versus 8.3% for the index. Since its inception on August 1, 1988, the
Portfolio has generated an average annual total return of 7.2%*, versus 9.1% for
the index. These returns take into account expenses incurred by the Portfolio,
but not separate account charges imposed by the insurance company.

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.

We maintained a defensive investment posture throughout the 1996 first half
by keeping the Portfolio's average maturity relatively short. This helped soften
the impact of the bond market's price decline. The effective average maturity of
the Portfolio was 13.7 years as of June 30, 1996. In addition, we increased the
Portfolio's holdings of government agency securities to improve yield. As of
June 30, 1996, the Portfolio was invested 36% in corporate notes and bonds, 5%
in U.S. Government agency securities, 29% in Mortgage-Related securities, 28% in
Treasury notes and bonds, and 2% in cash and equivalents.

The Portfolio continues to be overweighted in investment-grade issues of
financial services companies, accounting for 18% of net assets at the end of the
half. These securities offer the opportunity to earn more yield without
sacrificing credit quality.

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

* Based on results of the OCC Accumulation Trust and its predecessor. On
September 16, 1994, an investment company which had commenced operations on
August 1, 1988, called Quest for Value Accumulation Trust (the "Old Trust"),
was effectively divided into two investment funds -- the Old Trust and the
present OCC 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 period prior to September 16, 1994, the performance figures for
the Bond Portfolio of the Present Trust reflect the performance of the Bond
Portfolio of the Old Trust.

<PAGE> 8

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 4.42% as of June 30, 1996. The average dollar-weighted portfolio
maturity was 33 days.

We 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 June 30, 1996, 66% 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> 9

GLOBAL EQUITY PORTFOLIO

The Portfolio provided a total return of 7.7% in the 1996 first half,
exceeding the total return of 7.1% in U.S. dollars on Morgan Stanley
International's World Stock Index. This performance was 29th among the 36 global
funds in Lipper's Variable Insurance Products Performance Analysis Service
Report. For the 12 months ended June 30, 1996, the Portfolio's total return was
17.0%, compared with 18.6% for the World Stock Index.

The Portfolio generated an average annual total return of 20.3% from its
inception on March 1, 1995 through June 30, 1996, slightly below the 21.3%
average annual total return of the World Stock Index. Returns for the Portfolio
take into account expenses incurred by the Portfolio, but not separate account
charges imposed by the insurance company.

We view global diversification as a prudent tool for controlling risk and
capitalizing on investment opportunity wherever it may exist. The Portfolio
seeks long-term growth by investing in a diversified portfolio of high-quality
foreign and domestic stocks. As of June 30, 1996, net assets were allocated 48%
to international stocks, 43% to U.S. stocks, 2% to international securities
convertible into common stocks and 7% to foreign and domestic cash and cash
equivalents. The largest investment positions outside the United States were in
Japan, Germany, the United Kingdom and Sweden.

We are very enthusiastic about the outlook for global investing. A
revolution in the way companies are managed is spreading throughout the world.
Increasingly, companies in Europe, Asia and other regions are seeking to
strengthen their competitiveness by embracing U.S. business concepts of
restructuring. These concepts include strategic acquisitions, cash flow
generation, fundamental cost reduction and divestment of underperforming assets,
with a goal of maximizing return on investment and improving profitability.

Our value philosophy meshes well with this global trend. Instead of
spending large amounts of time analyzing macro economic developments or
attempting to forecast equity markets, we analyze individual companies to
identify those that meet strict criteria, including high cash flow,
shareholder-oriented managements and strong competitive positions. We are
finding many opportunities in today's global marketplace, where individual
companies are rigorously improving their performance.

During the half, we added a diverse array of new positions, including ACE,
Ltd., a Bermuda-based insurance company; Ares-Serono Group, a biotech company in
Switzerland; China Hong Kong Photo Product Holdings Ltd., which distributes film
in the People's Republic of China; and CAE, a Canadian manufacturer of flight
simulators. New or increased positions in the United States included Mattel,
Inc., Tenneco, Inc. and Union Pacific Corp.

We took some profits in Japan during the half, eliminating or reducing our
investments in Fuji Photo, Mitsubishi Heavy Industries, Rohm, Shin-Etsu Chemical
and Wacoal. We are concerned about high valuations in Japan at a time of an
uncertain profit outlook for Japanese industry. Other eliminations or reductions
included Hong Kong Land, Foster Brewing in Australia, AMS in Austria and Samsung
in South Korea.

The Portfolio's largest international holdings as of June 30, 1996 were
Sandoz AG, the Swiss pharmaceutical company, representing 1.2% of the
Portfolio's net assets; ACE, Ltd., a Bermuda-based provider of excess directors
and officers liability insurance, 1.1% of net assets; Mitsubishi Bank, Ltd.
(convertible securities), a Japanese commercial bank and provider of financial
services, 1.0% of net assets; Kyocera Corp., a Japanese ceramics maker and
telecommunications company, 1.0% of net assets; and Maruetsu, Inc., a Japanese
general merchandiser, 1.0% of net assets. The Portfolio's largest U.S. equity
holdings were Lockheed Martin Corp., a leading aerospace and defense systems
company, 4.6% of net assets; Citicorp, a major bank, 4.1% of net assets; du Pont
(E.I.) de Nemours & Co., a major industrial company operating in five main
businesses (chemicals, fibers, polymers, petroleum and diversified businesses),
3.9% of net assets; Wells Fargo & Co., a major bank in the western United
States, 3.8% of net assets; and McDonnell Douglas Corp., the largest U.S.
manufacturer of military aircraft and an important competitor in commercial
aircraft, 3.6% of net assets. Major industry positions were in the banking
sector, 12.6% of net assets; drugs and medical products, 8.5% of net assets;
aerospace and defense, 8.2% of net assets; consumer products, 7.3% of net
assets; and chemicals, 5.4% of net assets.
<PAGE> 10

U.S. GOVERNMENT INCOME PORTFOLIO

The Portfolio is intended for investors seeking high cash returns from
investments in government securities. In a period of generally declining bond
prices, the Portfolio had a slightly negative total return (dividends paid and
change in net asset value assuming the reinvestment of dividends) of 0.2% in the
half, compared with a flat performance (0.0% total return) for the Lehman
Brothers Intermediate Government Bond Index. The Portfolio's performance was
second best among the 30 U.S. government funds in Lipper's Variable Insurance
Products Performance Analysis Service Report.

For the 12 months ended June 30, 1996, the Portfolio had a positive total
return of 4.2%, compared with 4.8% for the Lehman Index. The Portfolio provided
an average annual total return of 8.5% from its inception on January 3, 1995
through June 30, 1996, versus an average annual total return of 9.4% for the
Lehman Index. Returns take into account expenses incurred by the Portfolio, but
not separate account charges imposed by the insurance company.

The Portfolio 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.

At the end of June 1996, the Portfolio's assets were allocated 40% to
Treasury securities and 59% to U.S. Government agency securities and 1% to cash.
The average maturity of the Portfolio's investments was 2.9 years.

We weathered the bond market's first-half price decline well by keeping the
Portfolio's average maturity relatively short. Prices of shorter maturities tend
to fall less than those of longer maturities in a declining market. We have
maintained our defensive posture heading into the second half of the year,
keeping maturities relatively short and holding above-average cash reserves.
<PAGE> 11

OCC ACCUMULATION TRUST
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED)

JUNE 30, 1996

<TABLE>
<CAPTION>
EQUITY SMALL CAP MANAGED BOND MONEY MARKET
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
----------- ----------- ------------ ---------- ------------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments, at value
(cost -- $12,467,097, $19,489,518,
$100,189,032, $4,727,992 and
$3,761,635, respectively)......... $14,953,432 $21,259,418 $127,174,037 $4,721,989 $3,761,635
Cash................................ 26,296 1,001,509 46,598 16,545 13,933
Receivable from investments sold.... -- 125,908 -- -- --
Receivable from fund shares sold.... 2,298 46,889 123,879 -- --
Dividends receivable................ 10,571 10,433 72,491 -- --
Interest receivable................. -- 3,431 74,448 76,364 --
Receivable from Adviser............. -- -- -- 111 1,337
Other assets........................ 893 1,039 4,153 608 599
----------- ----------- ------------ ---------- ----------
Total Assets.............. 14,993,490 22,448,627 127,495,606 4,815,617 3,777,504
----------- ----------- ------------ ---------- ----------
LIABILITIES
Payable for investments purchased... 336,150 726,376 -- -- --
Payable for fund shares redeemed.... 8 11,908 4,792 -- --
Dividends payable................... -- -- -- 7,746 4,695
Investment advisory fee payable..... 484 1,224 5,971 -- --
Other payables and accrued
expenses.......................... 16,466 27,608 64,049 13,588 11,435
----------- ----------- ------------ ---------- ----------
Total Liabilities......... 353,108 767,116 74,812 21,334 16,130
----------- ----------- ------------ ---------- ----------
NET ASSETS
Par value ($.01 per share).......... 5,424 10,493 39,687 5,086 37,612
Paid-in-surplus..................... 11,864,776 19,203,007 97,100,542 4,813,218 3,723,774
Accumulated undistributed net
investment income................. 89,504 103,781 931,550 -- --
Accumulated undistributed net
realized gain (loss) on
investments....................... 194,343 594,330 2,364,010 (18,018) (12)
Net unrealized appreciation
(depreciation) on investments..... 2,486,335 1,769,900 26,985,005 (6,003) --
----------- ----------- ------------ ---------- ----------
Total Net Assets.......... $14,640,382 $21,681,511 $127,420,794 $4,794,283 $3,761,374
=========== =========== ============ ========== ==========
Fund shares outstanding............. 542,357 1,049,311 3,968,679 508,586 3,761,160
----------- ----------- ------------ ---------- ----------
Net asset value per share........... $ 26.99 $ 20.66 $ 32.11 $ 9.43 $ 1.00
=========== =========== ============ ========== ==========
</TABLE>

See accompanying notes to financial statements.

<PAGE> 12

OCC ACCUMULATION TRUST
STATEMENTS OF OPERATIONS (UNAUDITED)

FOR THE SIX MONTHS ENDED JUNE 30, 1996

<TABLE>
<CAPTION>
EQUITY SMALL CAP MANAGED BOND MONEY MARKET
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
---------- ---------- ---------- --------- ------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Dividends............................. $ 76,254 $ 85,682 $ 889,889 $ -- $ --
Interest.............................. 65,112 94,808 477,554 160,715 105,458
---------- ---------- ---------- -------- --------
Total investment income............ 141,366 180,490 1,367,443 160,715 105,458
---------- ---------- ---------- -------- --------
OPERATING EXPENSES
Investment advisory fees (note 2A).... 42,428 61,821 376,874 12,172 7,818
Custodian fees (note 1G).............. 8,727 11,706 14,642 8,937 7,775
Auditing, consulting and tax return
preparation fees................... 4,976 5,125 6,182 5,027 5,125
Transfer and dividend disbursing agent
fees............................... 4,624 4,676 5,584 4,548 4,535
Legal fees............................ 1,588 2,748 5,804 1,652 1,443
Reports and notices to shareholders... 596 862 4,746 365 396
Trustees' fees and expenses........... -- -- 12,895 -- --
Miscellaneous......................... 4,811 7,981 24,317 3,289 1,861
---------- ---------- ---------- -------- --------
Total operating expenses........... 67,750 94,919 451,044 35,990 28,953
Less: Investment advisory fees
waived and expenses assumed (note
2A).............................. (14,214) (15,218) (13,361) (10,869) (8,955)
Less: Expense offset arrangement
(note 1G)........................ (1,674) (2,992) (1,791) (766) (428)
---------- ---------- ---------- -------- --------
Net operating expenses........ 51,862 76,709 435,892 24,355 19,570
---------- ---------- ---------- -------- --------
Net investment income......... 89,504 103,781 931,551 136,360 85,888
---------- ---------- ---------- -------- --------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS -- NET
Net realized gain (loss) on
investments........................ 194,342 682,221 2,364,010 (17,880) (13)
Net change in unrealized appreciation
(depreciation) on investments...... 962,570 657,397 5,659,084 (201,321) --
---------- ---------- ---------- -------- --------
Net realized gain (loss) and
change in unrealized
appreciation (depreciation)
on investments.............. 1,156,912 1,339,618 8,023,094 (219,201) (13)
---------- ---------- ---------- -------- --------
Net increase (decrease) in net assets
resulting from operations............. $1,246,416 $1,443,399 $8,954,645 $ (82,841) $ 85,875
========== ========== ========== ======== ========
</TABLE>

See accompanying notes to financial statements.

<PAGE> 13

OCC ACCUMULATION TRUST
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
EQUITY PORTFOLIO SMALL CAP PORTFOLIO MANAGED PORTFOLIO
--------------------------- --------------------------- ---------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED JUNE YEAR ENDED ENDED JUNE YEAR ENDED ENDED JUNE YEAR ENDED
30, DECEMBER 31, 30, DECEMBER 31, 30, DECEMBER 31,
1996(1) 1995 1996(1) 1995 1996(1) 1995
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS
Net investment income................... $ 89,504 $ 111,781 $ 103,781 $ 211,870 $ 931,551 $ 1,378,069
Net realized gain (loss) on
investments........................... 194,342 233,302 682,221 456,809 2,364,010 1,023,914
Net change in unrealized appreciation
(depreciation) on investments......... 962,570 1,628,793 657,397 1,189,804 5,659,084 23,901,028
----------- ----------- ----------- ----------- ------------ -----------
Net increase (decrease) in net
assets resulting from
operations........................ 1,246,416 1,973,876 1,443,399 1,858,483 8,954,645 26,303,011
----------- ----------- ----------- ----------- ------------ -----------
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS
Net investment income................... (111,781) (20,888) (211,870) (29,623) (1,378,070) (360,801)
Net realized gains...................... (223,969) -- (544,700) (26,352) (878,874) --
----------- ----------- ----------- ----------- ------------ -----------
Total dividends and distributions to
shareholders...................... (335,750) (20,888) (756,570) (55,975) (2,256,944) (360,801)
----------- ----------- ----------- ----------- ------------ -----------
FUND SHARE TRANSACTIONS
Net proceeds from sales................. 4,739,590 3,630,236 6,003,124 7,801,061 33,904,852 27,913,098
Reinvestment of dividends and
distributions......................... 335,750 20,888 756,532 55,975 2,256,944 360,801
Cost of shares redeemed................. (381,606) (849,386) (1,769,366) (2,865,595) (14,626,850) (9,971,333)
----------- ----------- ----------- ----------- ------------ -----------
Net increase (decrease) in net
assets from fund share
transactions...................... 4,693,734 2,801,738 4,990,290 4,991,441 21,534,946 18,302,566
----------- ----------- ----------- ----------- ------------ -----------
Total increase (decrease) in net
assets........................ 5,604,400 4,754,726 5,677,119 6,793,949 28,232,647 44,244,776
NET ASSETS
Beginning of period..................... 9,035,982 4,281,256 16,004,392 9,210,443 99,188,147 54,943,371
----------- ----------- ----------- ----------- ------------ -----------
End of period (including undistributed
net investment income of $89,504 and
$111,781; $103,781 and $211,870;
$931,550 and $1,378,069; $0 and $0 and
$0 and $0, respectively).............. $14,640,382 $9,035,982 $21,681,511 $16,004,392 $127,420,794 $99,188,147
=========== =========== =========== =========== ============ ===========
SHARES ISSUED AND REDEEMED
Issued.................................. 183,282 161,702 295,324 427,444 1,077,771 1,016,970
Issued in reinvestment of dividends and
distributions......................... 13,029 1,074 38,520 3,289 73,016 15,866
Redeemed................................ (14,643) (38,368) (88,207) (156,903) (472,857) (379,452)
----------- ----------- ----------- ----------- ------------ -----------
Net increase (decrease)............. 181,668 124,408 245,637 273,830 677,930 653,384
=========== =========== =========== =========== ============ ===========
- ---------------
(1) Unaudited.

<CAPTION>
BOND PORTFOLIO MONEY MARKET PORTFOLIO
--------------------------- ---------------------------
SIX MONTHS SIX MONTHS
ENDED JUNE YEAR ENDED ENDED JUNE YEAR ENDED
30, DECEMBER 31, 30, DECEMBER 31,
1996(1) 1995 1996(1) 1995
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income................... $ 136,360 $ 244,328 $ 85,888 $ 203,353
Net realized gain (loss) on
investments........................... (17,880) 79,769 (13) 47
Net change in unrealized appreciation
(depreciation) on investments......... (201,321) 269,489 -- --
---------- ---------- ---------- --------
Net increase (decrease) in net
assets resulting from
operations........................ (82,841) 593,586 85,875 203,400
---------- ---------- ---------- --------
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS
Net investment income................... (136,360) (244,328) (85,662) (203,353)
Net realized gains...................... (75,648) -- (46) --
---------- ---------- ---------- --------
Total dividends and distributions to
shareholders...................... (212,008) (244,328) (85,708) (203,353)
---------- ---------- ---------- --------
FUND SHARE TRANSACTIONS
Net proceeds from sales................. 1,039,373 1,574,585 2,272,291 4,346,773
Reinvestment of dividends and
distributions......................... 205,854 242,735 82,945 201,653
Cost of shares redeemed................. (440,550) (1,537,477) (2,950,113) (3,711,915)
---------- ---------- ---------- --------
Net increase (decrease) in net
assets from fund share
transactions...................... 804,677 279,843 (594,877) 836,511
---------- ---------- ---------- --------
Total increase (decrease) in net
assets........................ 509,828 629,101 (594,710) 836,558
NET ASSETS
Beginning of period..................... 4,284,455 3,655,354 4,356,084 3,519,526
---------- ---------- ---------- --------
End of period (including undistributed
net investment income of $89,504 and
$111,781; $103,781 and $211,870;
$931,550 and $1,378,069; $0 and $0 and
$0 and $0, respectively).............. $4,794,283 $ 4,284,455 $ 3,761,374 $ 4,356,084
========== ========== ========== ========
SHARES ISSUED AND REDEEMED
Issued.................................. 104,760 165,081 2,272,291 4,346,773
Issued in reinvestment of dividends and
distributions......................... 21,347 25,011 82,945 201,653
Redeemed................................ (46,262) (158,718) (2,950,113) (3,711,915)
---------- ---------- ---------- --------
Net increase (decrease)............. 79,845 31,374 (594,877) 836,511
========== ========== ========== ========
- ---------------
(1) Unaudited.
</TABLE>

See accompanying notes to financial statements.

<PAGE> 14

OCC ACCUMULATION TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

JUNE 30, 1996

(1) ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

OCC Accumulation Trust (the "Trust") (formerly Quest for Value Accumulation
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 Equity Portfolio, the
Small Cap Portfolio, the Managed Portfolio, the Bond Portfolio and the Money
Market Portfolio (collectively, the "Portfolios") are five of seven portfolios
offered in the Trust. Each portfolio is authorized to issue an unlimited number
of shares of beneficial interest at $.01 par value. OpCap Advisors (the
"Adviser"), a majority-owned (99%) subsidiary of Oppenheimer Capital, serves as
the Trust's investment adviser. The following is a summary of significant
accounting policies consistently followed by the Trust in the preparation of its
financial statements:

(A) VALUATION OF INVESTMENTS

The Money Market Portfolio: Portfolio securities are valued at amortized
cost, which approximates market value. The Equity, Small Cap, Managed and Bond
Portfolios: Investment securities, other than debt securities, listed on a
national securities 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. Investment
debt securities 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 sixty days or less are valued at amortized cost or amortized value,
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 Trust'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.

Investment transactions are accounted for on the trade date. In determining
the gain or loss from the sale of investments, the cost of investments 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

The Equity, Small Cap and Managed Portfolios: Dividends and distributions
to shareholders from net investment income and net realized capital gains, if
any, are declared and paid at least annually. The Bond and Money Market
Portfolios: 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 Trust's portfolios record dividends and distributions to its
shareholders on the ex-dividend date. The amount of dividends and distributions
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

<PAGE> 15

OCC ACCUMULATION TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

JUNE 30, 1996

(1) ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(D) DIVIDENDS AND DISTRIBUTIONS (CONTINUED)
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 dividends and
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 June 30, 1996, the Trust's portfolios 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 applicable portfolios of the
Trust or on another reasonable basis.

(F) USE OF ESTIMATES

The preparation of the financial statements in accordance with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts and disclosures in the financial
statements. Actual results could differ from those estimates.

(G) CUSTODY OFFSETS

The Portfolios benefit from an expense offset arrangement with its
custodian bank where uninvested cash balances earn credits that reduce monthly
fees. Had these cash balances been invested in income producing securities, they
would have generated income for the Portfolios.

(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 each Portfolio's net assets as of the close of
business each day at the following annual rates: .80% for each of the Equity,
Small Cap and Managed Portfolios; .50% for the Bond Portfolio; and .40% for the
Money Market Portfolio.

The Adviser has voluntarily agreed to waive that portion of each advisory
fee and to assume any necessary expenses to limit total operating expenses of
each Portfolio to 1.00% (net of expense offsets) of average daily net assets on
an annual basis.

(B) Total brokerage commissions paid by the Equity, Small Cap and Managed
Portfolios amounted to $7,565, $24,371 and $41,669, respectively, of which
Oppenheimer & Co., Inc., an affiliate of the Adviser, received $1,998, $9,245
and $14,398, respectively, for the six months ended June 30, 1996.

(3) PURCHASES AND SALES OF SECURITIES

For the six months ended June 30, 1996, purchases and sales of investment
securities, other than short-term securities, were as follows:

<TABLE>
<CAPTION>
EQUITY SMALL CAP MANAGED BOND MONEY MARKET
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO*
---------- ---------- ----------- ---------- ------------
<S> <C> <C> <C> <C> <C>
Purchases....................... $6,356,692 $9,533,471 $30,348,625 $3,839,327 $17,964,097
Sales........................... 2,329,376 5,079,529 15,349,679 2,995,433 18,656,972
</TABLE>

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

* All short-term securities and maturities.

<PAGE> 16

OCC ACCUMULATION TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

JUNE 30, 1996

(4) UNREALIZED APPRECIATION (DEPRECIATION) AND COST OF INVESTMENTS FOR FEDERAL
INCOME TAX PURPOSES

At June 30, 1996, the composition of unrealized appreciation (depreciation)
of investment securities and the cost of investments for Federal income tax
purposes were as follows:

<TABLE>
<CAPTION>
APPRECIATION (DEPRECIATION) NET TAX COST
------------ -------------- ----------- ------------
<S> <C> <C> <C> <C>
Equity Portfolio......................... $ 2,518,177 $ (31,842) $ 2,486,335 $ 12,467,097
Small Cap Portfolio...................... 2,234,902 (465,002) 1,769,900 19,489,518
Managed Portfolio........................ 27,613,293 (628,288) 26,985,005 100,189,032
Bond Portfolio........................... 49,698 (55,701) (6,003) 4,727,992
Money Market Portfolio................... -- -- -- 3,761,635
</TABLE>

(5) SPECIAL SHAREHOLDER MEETING

The Trust held a special meeting of its shareholders on April 15, 1996 to
vote on an amendment to the Investment Advisory Agreement between OpCap Advisors
and the Trust, resulting in an increase in the advisory fees for three of the
five Portfolios. The following table provides results of the matter voted on at
the meeting:

<TABLE>
<CAPTION>
FOR AGAINST ABSTAIN
--------- ------- -------
<S> <C> <C> <C>
Equity Portfolio............................... 317,992 53,916 11,821
Small Cap Portfolio............................ 612,067 206,657 19,559
Managed Portfolio.............................. 2,468,442 601,073 201,753
</TABLE>

<PAGE> 17

OCC ACCUMULATION TRUST
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
INCOME FROM DIVIDENDS AND
INVESTMENT OPERATIONS DISTRIBUTIONS
------------------------------------ ----------------------------
DISTRIBUTIONS
NET REALIZED TO
AND DIVIDENDS TO SHAREHOLDERS
NET ASSET UNREALIZED TOTAL SHAREHOLDERS FROM NET NET ASSET
VALUE, NET GAIN(LOSS) FROM FROM NET REALIZED GAINS VALUE,
BEGINNING INVESTMENT ON INVESTMENT INVESTMENT ON END OF
OF PERIOD INCOME INVESTMENTS OPERATIONS INCOME INVESTMENTS PERIOD
--------- ---------- ------------ ---------- ------------ -------------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
EQUITY PORTFOLIO
Six Months Ended June 30,
1996(5)........................... $ 25.05 $ 0.09 $ 2.56 $ 2.65 $(0.24) $(0.47) $ 26.99
Year Ended December 31, 1995....... 18.12 0.31 6.71 7.02 (0.09) -- 25.05
September 16, 1994(3) to December
31, 1994.......................... 18.57 0.09 (0.54) (0.45) -- -- 18.12

NET
ASSETS,
TOTAL END OF
RETURN* PERIOD
------- ------------
<S> <C> <C>
EQUITY PORTFOLIO
Six Months Ended June 30,
1996(5)........................... 10.7% $14,640,382
Year Ended December 31, 1995....... 38.9% 9,035,982
September 16, 1994(3) to December
31, 1994.......................... (2.4%) 4,281,256

<CAPTION>
RATIOS
------------------------------------------------------------------
RATIO OF RATIO OF
NET NET
OPERATING INVESTMENT
EXPENSES INCOME
TO TO
AVERAGE AVERAGE PORTFOLIO AVERAGE
NET NET TURNOVER COMMISSION
ASSETS ASSETS RATE RATE
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
EQUITY PORTFOLIO
Six Months Ended June 30,
1996(5)........................... 0.85% (1,2,4,6) 1.42% (1,2,4) 23% $ 0.06
Year Ended December 31, 1995....... 0.72% (1) 1.74% (1) 31% --
September 16, 1994(3) to December
31, 1994.......................... 0.72% (1,4) 1.80% (1,4) 6% --
</TABLE>

(1) During the periods presented above, the Adviser waived a portion or all of
its fees and assumed a portion of the Portfolio's operating expenses.
Additionally, for the six months ended June 30, 1996, the Portfolio
benefited from an expense offset arrangement with its custodian bank. If
such waivers, assumptions and expense offsets had not been in effect, the
ratios of net operating expenses to average daily net assets and the ratios
of net investment income to average daily net assets would have been 1.08%
and 1.17%, annualized, respectively, for the six months ended June 30, 1996,
1.26% and 1.20%, respectively, for the year ended December 31, 1995 and
2.09% and 0.43%, annualized, respectively, for the period September 16, 1994
(commencement of operations) to December 31, 1994.
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C>
SMALL CAP PORTFOLIO
Six Months Ended June 30,
1996(5)........................... $ 19.91 $ 0.09 $ 1.55 $ 1.64 $ (0.25) $ (0.64) $ 20.66
Year Ended December 31, 1995....... 17.38 0.26 2.37 2.63 (0.05) (0.05) 19.91
September 16, 1994(3) to December
31, 1994.......................... 17.49 0.06 (0.17) (0.11) -- -- 17.38

<CAPTION>
SMALL CAP PORTFOLIO
<S> <C> <C>
Six Months Ended June 30,
1996(5)........................... 8.5% $21,681,511
Year Ended December 31, 1995....... 15.2% 16,004,392
September 16, 1994(3) to December
31, 1994.......................... (0.6%) 9,210,443

<CAPTION>
<S> <C> <C> <C> <C>
SMALL CAP PORTFOLIO
Six Months Ended June 30,
1996(5)........................... 0.87% (1,2,4,6) 1.14% (1,2,4) 33% $ 0.05
Year Ended December 31, 1995....... 0.74% (1) 1.75% (1) 69% --
September 16, 1994(3) to December
31, 1994.......................... 0.74% (1,4) 1.22% (1,4) 32% --
</TABLE>

(1) During the periods presented above, the Adviser waived a portion or all of
its fees and assumed a portion of the Portfolio's operating expenses.
Additionally, for the six months ended June 30, 1996, the Portfolio
benefited from an expense offset arrangement with its custodian bank. If
such waivers, assumptions and expense offsets had not been in effect, the
ratios of net operating expenses to average daily net assets and the ratios
of net investment income to average daily net assets would have been 1.04%
and 0.94%, annualized, respectively, for the six months ended June 30, 1996,
0.99% and 1.50%, respectively, for the year ended December 31, 1995 and
1.64% and 0.32%, annualized, respectively, for the period September 16, 1994
(commencement of operations) to December 31, 1994.
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C>
MANAGED PORTFOLIO
Six Months Ended June 30,
1996(5)........................... $ 30.14 $ 0.23 $ 2.41 $ 2.64 $ (0.41) $ (0.26) $ 32.11
Year Ended December 31, 1995....... 20.83 0.42 9.02 9.44 (0.13) -- 30.14
September 16, 1994(3) to December
31, 1994.......................... 21.80 0.14 (1.11) (0.97) -- -- 20.83

<CAPTION>
MANAGED PORTFOLIO
<S> <C> <C>
Six Months Ended June 30,
1996(5)........................... 8.9% $127,420,794
Year Ended December 31, 1995....... 45.6% 99,188,147
September 16, 1994(3) to December
31, 1994.......................... (4.4%) 54,943,371

<CAPTION>
<S> <C> <C> <C> <C>
MANAGED PORTFOLIO
Six Months Ended June 30,
1996(5)........................... 0.78% (1,2,4,6) 1.67% (1,2,4) 16% $ 0.06
Year Ended December 31, 1995....... 0.66% (1) 1.85% (1) 22% --
September 16, 1994(3) to December
31, 1994.......................... 0.66% (1,4) 2.34% (1,4) 8% --
</TABLE>

(1) During the periods presented above, the Adviser waived a portion of its
fees. Additionally, for the six months ended June 30, 1996, the Portfolio
benefited from an expense offset arrangement with its custodian bank. If
such waivers and expense offsets had not been in effect, the ratios of net
operating expenses to average daily net assets and the ratios of net
investment income to average daily net assets would have been 0.81% and
1.64%, annualized, respectively, for the six months ended June 30, 1996,
0.74% and 1.77%, respectively, for the year ended December 31, 1995 and
0.96% and 2.04%, annualized, respectively, for the period September 16, 1994
(commencement of operations) to December 31, 1994.
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C>
BOND PORTFOLIO
Six Months Ended June 30,
1996(5)........................... $ 9.99 $ 0.27 $ (0.41) $ (0.14) $ (0.27) $ (0.15) $ 9.43
Year Ended December 31, 1995....... 9.20 0.58 0.79 1.37 (0.58) -- 9.99
September 16, 1994(3) to December
31, 1994.......................... 9.40 0.17 (0.20) (0.03) (0.17) -- 9.20

<CAPTION>
BOND PORTFOLIO
<S> <C> <C>
Six Months Ended June 30,
1996(5)........................... (1.5%) $4,794,283
Year Ended December 31, 1995....... 15.2% 4,284,455
September 16, 1994(3) to December
31, 1994.......................... (0.3%) 3,655,354

<CAPTION>
<S> <C> <C> <C> <C>
BOND PORTFOLIO
Six Months Ended June 30,
1996(5)........................... 1.03% (1,2,4,6) 5.60% (1,2,4) 65% --
Year Ended December 31, 1995....... 1.00% (1) 5.95% (1) 134% --
September 16, 1994(3) to December
31, 1994.......................... 1.00% (1,4) 6.26% (1,4) 7% --
</TABLE>

(1) During the periods presented above, the Adviser waived a portion or all of
its fees and assumed a portion of the Portfolio's operating expenses.
Additionally, for the six months ended June 30, 1996, the Portfolio
benefited from an expense offset arrangement with its custodian bank. If
such waivers, assumptions and expense offsets had not been in effect, the
ratios of net operating expenses to average daily net assets and the ratios
of net investment income to average daily net assets would have been 1.48%
and 5.12%, annualized, respectively, for the six months ended June 30, 1996,
1.52% and 5.43%, respectively, for the year ended December 31, 1995 and
2.05% and 5.21%, annualized, respectively, for the period September 16, 1994
(commencement of operations) to December 31, 1994.
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C>
MONEY MARKET PORTFOLIO
Six Months Ended June 30,
1996(5)........................... $ 1.00 $ 0.02 $ 0.00 $ 0.02 $ (0.02) $ (0.00) $ 1.00
Year Ended December 31, 1995....... 1.00 0.05 0.00 0.05 (0.05) -- 1.00
September 16, 1994(3) to December
31, 1994.......................... 1.00 0.01 -- 0.01 (0.01) -- 1.00

<CAPTION>
MONEY MARKET PORTFOLIO
<S> <C> <C>
Six Months Ended June 30,
1996(5)........................... 2.2% $3,761,374
Year Ended December 31, 1995....... 5.1% 4,356,084
September 16, 1994(3) to December
31, 1994.......................... 1.2% 3,519,526

<CAPTION>
<S> <C> <C> <C> <C>
MONEY MARKET PORTFOLIO
Six Months Ended June 30,
1996(5)........................... 1.02% (1,2,4,6) 4.39% (1,2,4) -- --
Year Ended December 31, 1995....... 1.00% (1) 4.94% (1) -- --
September 16, 1994(3) to December
31, 1994.......................... 1.00% (1,4) 4.13% (1,4) -- --
</TABLE>

(1) During the periods presented above, the Adviser waived a portion or all of
its fees and assumed a portion of the Portfolio's operating expenses.
Additionally, for the six months ended June 30, 1996, the Portfolio
benefited from an expense offset arrangement with its custodian bank. If
such waivers, assumptions and expense offsets had not been in effect, the
ratios of net operating expenses to average daily net assets and the ratios
of net investment income to average daily net assets would have been 1.48%
and 3.91%, annualized, respectively, for the six months ended June 30, 1996,
1.14% and 4.80%, respectively, for the year ended December 31, 1995 and
2.03% and 3.10%, annualized, respectively, for the period September 16, 1994
(commencement of operations) to December 31, 1994.
- ---------------

(2) Average daily net assets for the six months ended June 30, 1996 were
$12,638,621, $18,385,398, $112,431,879, $4,895,458 and $3,930,480 for the
Equity, Small Cap, Managed, Bond and Money Market Portfolios, respectively.
(3) Commencement of operations.
(4) Annualized.
(5) Unaudited.
(6) Does not reflect expense offsets.
* Assumes reinvestment of all dividends and distributions. Aggregate (not
annualized) total return is shown for any period shorter than one year.

<PAGE> 18

OCC ACCUMULATION TRUST
EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)

JUNE 30, 1996
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- --------- -----------
<C> <S> <C>
U.S. GOVERNMENT AGENCY NOTE -- 2.7%
$ 400,000 Federal Home Loan Bank, 5.27%, 7/10/96 (cost -- $399,473)............ $ 399,473
----------
SHORT-TERM CORPORATE NOTES -- 13.6%
AUTOMOTIVE -- 2.8%
Ford Motor Credit Co.,
$ 200,000 5.36%, 8/15/96..................................................... $ 198,660
210,000 5.37%, 8/15/96..................................................... 208,590
----------
407,250
----------
MACHINERY/ENGINEERING -- 4.3%
630,000 Deere (John) Capital Corp., 5.30%, 7/10/96........................... 629,165
----------
MISCELLANEOUS FINANCIAL SERVICES -- 4.3%
Beneficial Corp.,
100,000 5.23%, 7/1/96...................................................... 100,000
540,000 5.26%, 7/1/96...................................................... 540,000
----------
640,000
----------
TECHNOLOGY -- 2.2%
320,000 IBM Credit Corp., 5.31%, 7/23/96..................................... 318,962
----------
Total Short-Term Corporate Notes (cost -- $1,995,377).............. $ 1,995,377
----------

<CAPTION>
SHARES
- --------
<C> <S> <C>
COMMON STOCKS -- 85.8%
AEROSPACE/DEFENSE -- 6.7%
3,380 AlliedSignal, Inc. .................................................. $ 193,083
5,000 Lockheed Martin Corp. ............................................... 420,000
7,494 McDonnell Douglas Corp. ............................................. 363,459
----------
976,542
----------
BANKING -- 7.0%
6,556 Citicorp............................................................. 541,689
2,033 Wells Fargo & Co. ................................................... 485,633
----------
1,027,322
----------
CHEMICALS -- 3.4%
2,000 du Pont (E.I.) de Nemours & Co. ..................................... 158,250
3,198 Hercules, Inc. ...................................................... 176,690
4,910 Monsanto Co. ........................................................ 159,575
----------
494,515
----------
</TABLE>

<PAGE> 19

OCC ACCUMULATION TRUST
EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)

JUNE 30, 1996

<TABLE>
<CAPTION>
SHARES VALUE
- -------- ----------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
CONGLOMERATES -- 1.3%
2,156 General Electric Co. ................................................ $ 186,494
----------
CONSUMER PRODUCTS -- 2.5%
3,844 Avon Products, Inc. ................................................. 173,460
6,843 Mattel, Inc. ........................................................ 195,881
----------
369,341
----------
DRUGS & MEDICAL PRODUCTS -- 3.8%
7,021 Becton, Dickinson & Co. ............................................. 563,435
----------
ELECTRONICS -- 3.9%
7,038 Arrow Electronics, Inc.*............................................. 303,514
10,000 Electronic Arts, Inc.*............................................... 267,500
----------
571,014
----------
ENERGY -- 1.7%
4,996 Triton Energy Ltd.*.................................................. 242,931
----------
HEALTH & HOSPITALS -- 4.6%
7,000 Columbia/HCA Healthcare Corp. ....................................... 373,625
14,000 Tenet Healthcare Corp.*.............................................. 299,250
----------
672,875
----------
INSURANCE -- 22.5%
14,700 ACE, Ltd. ........................................................... 690,900
7,372 AFLAC, Inc. ......................................................... 220,238
3,262 American International Group, Inc. .................................. 321,715
17,000 Everest Reinsurance Holdings, Inc. .................................. 439,875
6,726 EXEL Ltd. ........................................................... 474,183
12,000 Mid Ocean Ltd. ...................................................... 492,000
4,579 Progressive Corp. (Ohio)............................................. 211,779
12,000 RenaissanceRe Holdings Ltd. ......................................... 369,000
874 Transamerica Corp. .................................................. 70,794
----------
3,290,484
----------
MACHINERY/ENGINEERING -- 3.2%
7,000 Caterpillar, Inc. ................................................... 474,250
----------
MANUFACTURING -- 4.7%
8,000 Shaw Industries, Inc. ............................................... 105,000
12,000 Varity Corp.*........................................................ 577,500
----------
682,500
----------
</TABLE>

<PAGE> 20

OCC ACCUMULATION TRUST
EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)

JUNE 30, 1996

<TABLE>
<CAPTION>
SHARES VALUE
- --------- -----------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
METALS & MINING -- .5%
2,145 Freeport McMoRan Copper & Gold (Class B)............................. $ 68,372
----------
MISCELLANEOUS FINANCIAL SERVICES -- 7.9%
3,245 American Express Co. ................................................ 144,808
19,912 Countrywide Credit Industries, Inc. ................................. 492,822
6,155 Federal Home Loan Mortgage Corp...................................... 526,252
----------
1,163,882
----------
PRINTING/PUBLISHING -- 2.1%
9,000 Donnelley (R.R.) & Sons Co. ......................................... 313,875
----------
RAILROADS -- 1.2%
2,100 Norfolk Southern Corp. .............................................. 177,975
----------
RETAIL -- 3.3%
10,888 May Department Stores Co. ........................................... 476,350
----------
TELECOMMUNICATIONS -- 2.8%
6,000 Sprint Corp. ........................................................ 252,000
9,000 Tele-Communications, Inc.*........................................... 163,125
----------
415,125
----------
TRANSPORTATION -- 2.7%
4,300 AMR Corp.*........................................................... 391,300
----------
Total Common Stocks (cost -- $10,072,247)............................ $12,558,582
-----------
Total Investments(A) (cost -- $12,467,097).................... 102.1% $14,953,432
Other Liabilities in Excess of Other Assets................... (2.1) (313,050)
----- -----------
Total Net Assets.............................................. 100.0% $14,640,382
===== ==========
</TABLE>

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

* Non-income producing security.

(A) Aggregate gross unrealized appreciation for securities in which there is an
excess of value over tax cost is $2,518,177, aggregate gross unrealized
depreciation for securities in which there is an excess of tax cost over
value is $31,842 and net unrealized appreciation for Federal income tax
purpose is $2,486,335. Federal income tax basis of portfolio securities is
substantially the same as for financial reporting purposes.

See accompanying notes to financial statements.

<PAGE> 21

OCC ACCUMULATION TRUST
EQUITY PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED)

JUNE 30, 1996

<TABLE>
<S> <C>
ASSETS
Investments, at value (cost -- $12,467,097).................................... $14,953,432
Cash........................................................................... 26,296
Dividends receivable........................................................... 10,571
Receivable from fund shares sold............................................... 2,298
Other assets................................................................... 893
-----------
Total Assets................................................................. 14,993,490
-----------
LIABILITIES
Payable for investments purchased.............................................. 336,150
Investment advisory fee payable................................................ 484
Payable for fund shares redeemed............................................... 8
Other payables and accrued expenses............................................ 16,466
-----------
Total Liabilities............................................................ 353,108
-----------
NET ASSETS
Par value ($.01 per share)..................................................... 5,424
Paid-in-surplus................................................................ 11,864,776
Accumulated undistributed net investment income................................ 89,504
Accumulated undistributed net realized gain on investments..................... 194,343
Net unrealized appreciation on investments..................................... 2,486,335
-----------
Total Net Assets............................................................. $14,640,382
==========
Fund shares outstanding........................................................ 542,357
-----------
Net asset value per share...................................................... $ 26.99
==========
</TABLE>

See accompanying notes to financial statements.

<PAGE> 22

OCC ACCUMULATION TRUST
EQUITY PORTFOLIO
STATEMENT OF OPERATIONS (UNAUDITED)

FOR THE SIX MONTHS ENDED JUNE 30, 1996

<TABLE>
<S> <C>
INVESTMENT INCOME
Dividends..................................................................... $ 76,254
Interest...................................................................... 65,112
----------
Total investment income.................................................... 141,366
----------
OPERATING EXPENSES
Investment advisory fees (note 2A)............................................ 42,428
Custodian fees (note 1G)...................................................... 8,727
Auditing, consulting and tax return preparation fees.......................... 4,976
Transfer and dividend disbursing agent fees................................... 4,624
Legal fees.................................................................... 1,588
Reports and notices to shareholders........................................... 596
Miscellaneous................................................................. 4,811
----------
Total operating expenses................................................... 67,750
Less: Investment advisory fees waived (note 2A)............................ (14,214)
Less: Expense offset arrangement (note 1G)................................. (1,674)
----------
Net operating expenses................................................ 51,862
----------
Net investment income................................................. 89,504
----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET
Net realized gain on investments........................................... 194,342
Net change in unrealized appreciation (depreciation) on investments........ 962,570
----------
Net realized gain and change in unrealized appreciation (depreciation)
on investments........................................................ 1,156,912
----------
Net increase in net assets resulting from operations............................ $1,246,416
=========
</TABLE>

See accompanying notes to financial statements.

<PAGE> 23

OCC ACCUMULATION TRUST
EQUITY PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1996(1) DECEMBER 31, 1995
---------------- -----------------
<S> <C> <C>
OPERATIONS
Net investment income........................................ $ 89,504 $ 111,781
Net realized gain on investments............................. 194,342 233,302
Net change in unrealized appreciation (depreciation) on
investments................................................ 962,570 1,628,793
----------- ----------
Net increase in net assets resulting from operations.... 1,246,416 1,973,876
----------- ----------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Net investment income........................................ (111,781) --
Net realized gains........................................... (223,969) (20,888)
----------- ----------
Total dividends and distributions to shareholders....... (335,750) (20,888)
----------- ----------
FUND SHARE TRANSACTIONS
Net proceeds from sales...................................... 4,739,590 3,630,236
Reinvestment of dividends and distributions.................. 335,750 20,888
Cost of shares redeemed...................................... (381,606) (849,386)
----------- ----------
Net increase in net assets from fund share
transactions.......................................... 4,693,734 2,801,738
----------- ----------
Total increase in net assets....................... 5,604,400 4,754,726
NET ASSETS
Beginning of period.......................................... 9,035,982 4,281,256
----------- ----------
End of period (including undistributed net investment income
of $89,504 and $111,781, respectively)..................... $ 14,640,382 $ 9,035,982
=========== ==========
SHARES ISSUED AND REDEEMED
Issued....................................................... 183,282 161,702
Issued in reinvestment of dividends and distributions........ 13,029 1,074
Redeemed..................................................... (14,643) (38,368)
----------- ----------
Net increase............................................ 181,668 124,408
=========== ==========
</TABLE>

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

(1) Unaudited.

See accompanying notes to financial statements.

<PAGE> 24

OCC ACCUMULATION TRUST
EQUITY PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

JUNE 30, 1996

(1) ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

OCC Accumulation Trust (formerly 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 "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 (the
"Adviser"), a majority-owned (99%) subsidiary of Oppenheimer Capital, serves as
the Trust's investment adviser. 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. Investment debt securities 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 sixty days or less are
valued at amortized cost or amortized value, 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.

(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> 25

OCC ACCUMULATION TRUST
EQUITY PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

JUNE 30, 1996

(1) ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(D) DIVIDENDS AND DISTRIBUTIONS (CONTINUED)
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 June 30, 1996, the
Portfolio did not have any permanent book-tax differences.

(E) ALLOCATION OF EXPENSES

(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.

(G) CUSTODY OFFSETS

The Portfolio benefits from an expense offset arrangement with its
custodian bank where uninvested cash balances earn credits that reduce monthly
fees. Had these cash balances been invested in income producing securities, they
would have generated income for the Portfolio.

(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 .80%.

The Adviser has agreed to waive that portion of the advisory fee and to
assume any necessary expenses to limit operating expenses of the Portfolio to
1.00% (net of expense offsets) of average daily net assets on an annual basis.

(B) Total brokerage commissions paid by the Portfolio for the six months ended
June 30, 1996, amounted to $7,565, of which Oppenheimer & Co., Inc., an
affiliate of the Adviser, received $1,998.

(3) PURCHASES AND SALES OF INVESTMENTS

For the six months ended June 30, 1996, purchases and sales of investment
securities, other than short-term securities were $6,356,692 and $2,329,376,
respectively.

(4) SPECIAL SHAREHOLDER MEETING

The Trust held a special meeting of its shareholders on April 15, 1996 to
vote on an amendment to the Investment Advisory Agreement between OpCap Advisors
and the Trust, resulting in an increase in the advisory fees for the Portfolio.
The following provides results of the matter voted on at the meeting:

<TABLE>
<CAPTION>
FOR AGAINST ABSTAIN
- ------- ------- -------
<S> <C> <C>
317,992 53,916 11,821
</TABLE>

<PAGE> 26

OCC ACCUMULATION TRUST
EQUITY PORTFOLIO
FINANCIAL HIGHLIGHTS

FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD:

<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED SEPTEMBER 16, 1994(2)
JUNE 30, 1996(1) DECEMBER 31, 1995 TO DECEMBER 31, 1994
---------------- ----------------- ------------------------
<S> <C> <C> <C>
Net asset value, beginning of
period.............................. $ 25.05 $ 18.12 $ 18.57
---------------- ----------------- -------------
Income from investment operations:
Net investment income................. 0.09 0.31 0.09
Net realized and unrealized gain
(loss) on investments............... 2.56 6.71 (0.54)
---------------- ----------------- -------------
Total from investment operations.... 2.65 7.02 (0.45)
---------------- ----------------- -------------
Dividends and distributions to
shareholders:
Dividends to shareholders from net
investment income................... (0.24) (0.09) --
Distributions to shareholders from net
realized capital gains.............. (0.47) -- --
---------------- ----------------- -------------
Total dividends and distributions... (0.71) (0.09) --
---------------- ----------------- -------------
Net asset value, end of period........ $ 26.99 $ 25.05 $ 18.12
============= ============= ==================
Total return(3)....................... 10.7% 38.9% (2.4%)
============= ============= ==================
Net assets, end of period............. $ 14,640,382 $ 9,035,982 $4,281,256
---------------- ----------------- -------------
Ratio of net operating expenses to
average net assets(7)............... 0.85%(4,5,6) 0.72% 0.72%(4)
---------------- ----------------- -------------
Ratio of net investment income to
average net assets(7)............... 1.42%(4,5) 1.74% 1.80%(4)
---------------- ----------------- -------------
Portfolio turnover.................... 23% 31% 6%
---------------- ----------------- -------------
Average commission rate............... $ 0.06 -- --
============= ============= ==================
</TABLE>

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

(1) Unaudited.

(2) Commencement of operations.

(3) Assumes reinvestment of all dividends and distributions. Aggregate (not
annualized) total return is shown for any period shorter than one year.

(4) Annualized.

(5) Average net assets for the six months ended June 30, 1996 were $12,638,621.

(6) Does not reflect expense offsets.

(7) During the periods presented above, the Adviser waived a portion or all of
its fees and assumed a portion of the Portfolio's operating expenses.
Additionally, for the six months ended June 30, 1996, the Portfolio
benefited from an expense offset arrangement with its custodian bank. If
such waivers, assumptions and expense offsets had not been in effect, the
ratios of net operating expenses to average net assets would have been
1.08%, 1.26% and 2.09%, respectively, and the ratios of net investment
income to average net assets would have been 1.17%, 1.20% and .43%,
respectively.

<PAGE> 27

OCC ACCUMULATION TRUST
SMALL CAP PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)

JUNE 30, 1996
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- --------- -----------
<C> <S> <C>
SHORT-TERM CORPORATE NOTES -- 8.6%
AUTOMOTIVE -- 2.7%
$ 224,000 Ford Motor Credit Co., 5.36%, 7/31/96................................ $ 222,999
350,000 General Motors Acceptance Corp., 5.40%, 7/22/96...................... 348,897
-------
571,896
-------
MACHINERY/ENGINEERING -- 1.8%
400,000 Deere (John) Capital Corp., 5.36%, 8/8/96............................ 397,737
-------
MISCELLANEOUS FINANCIAL SERVICES -- 2.3%
Beneficial Corp.,
310,000 5.28%, 7/10/96..................................................... 309,591
190,000 5.35%, 7/10/96..................................................... 189,746
-------
499,337
-------
TECHNOLOGY -- 1.8%
400,000 IBM Credit Corp., 5.36%, 7/23/96..................................... 398,690
-------
Total Short-Term Corporate Notes (cost -- $1,867,660)................ $ 1,867,660
-------
CORPORATE NOTE -- .1%
AUTOMOTIVE -- .1%
$ 2,148 Collins Industries, Inc., 8.75%, 1/11/00 (cost -- $2,148)............ $ 1,921
-------
CONVERTIBLE CORPORATE BOND -- .2%
REAL ESTATE -- .2%
$ 52,279 Security Capital Group, Inc., 12.00%, 6/30/14(A) (cost -- $47,651)... $ 53,578
-------

<CAPTION>
SHARES
<C> <S> <C>
CONVERTIBLE PREFERRED STOCK -- .4%
TRANSPORTATION -- .4%
825 Interpool, Inc., 5.75%, Conv. Pfd. (cost -- $62,700)................. $ 78,375
-------
COMMON STOCKS -- 88.8%
ADVERTISING -- 2.9%
24,900 Katz Media Group, Inc.*.............................................. $ 357,937
6,000 Omnicom Group, Inc. ................................................. 279,000
-------
636,937
-------
AUTOMOTIVE -- .4%
2,400 Borg-Warner Automotive, Inc. ........................................ 94,800
-------
BANKING -- .7%
6,800 First Financial Caribbean Corp. ..................................... 139,400
-------
BUILDING & CONSTRUCTION -- 1.3%
11,500 Martin Marietta Materials, Inc. ..................................... 278,875
-------
</TABLE>

<PAGE> 28

OCC ACCUMULATION TRUST
SMALL CAP PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)

JUNE 30, 1996

<TABLE>
<CAPTION>
SHARES VALUE
-------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
CHEMICALS -- 1.5%
10,500 McWhorter Technologies, Inc.*........................................ $ 186,375
9,800 Sybron Chemicals, Inc.*.............................................. 142,100
-------
328,475
-------
COMPUTER SERVICES -- 2.9%
30,867 BancTec, Inc.*....................................................... 625,057
-------
DRUGS & MEDICAL PRODUCTS -- 4.9%
5,000 Dentsply International, Inc. ........................................ 212,500
36,800 Spacelabs, Inc.*..................................................... 855,600
-------
1,068,100
-------
ELECTRICAL EQUIPMENT -- 16.2%
9,200 Arrow Electronics, Inc.*............................................. 396,750
5,300 AVX Corp. ........................................................... 98,050
47,800 EG & G, Inc. ........................................................ 1,021,725
31,500 Exar Corp.*.......................................................... 409,500
19,100 Marshall Industries*................................................. 534,800
35,620 Oak Industries, Inc.*................................................ 1,055,242
-------
3,516,067
-------
ENERGY -- 7.2%
7,948 Aquila Gas Pipeline Corp. ........................................... 103,324
12,600 Belden & Blake Corp.*................................................ 261,450
15,500 Global Natural Resources, Inc.*...................................... 253,812
13,000 Noble Drilling Corp.*................................................ 180,375
9,000 Nuevo Energy Co.*.................................................... 290,250
21,300 Petroleum Heat & Power Company, Inc. (Class A)....................... 165,075
12,500 St. Mary Land & Exploration Co. ..................................... 209,375
2,000 Triton Energy Ltd.*.................................................. 97,250
-------
1,560,911
-------
ENTERTAINMENT -- .1%
15,983 Spectravision, Inc. (Class B)*....................................... 3,996
-------
HEALTH & HOSPITALS -- 5.0%
42,200 Magellan Health Services, Inc.*...................................... 907,300
8,000 Summit Care Corp.*................................................... 176,000
-------
1,083,300
-------
</TABLE>

<PAGE> 29

OCC ACCUMULATION TRUST
SMALL CAP PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)

JUNE 30, 1996

<TABLE>
<CAPTION>
SHARES VALUE
-------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
INSURANCE -- 13.7%
9,400 ACE, Ltd. ........................................................... $ 441,800
12,100 Capitol American Financial Corp...................................... 304,012
12,100 Capsure Holdings Corp.*.............................................. 216,288
13,000 Delphi Financial Group, Inc. ........................................ 351,000
10,900 Everest Reinsurance Holdings, Inc. .................................. 282,038
20,000 E.W. Blanch Holdings, Inc. .......................................... 397,500
7,000 Horace Mann Educators Corp. ......................................... 222,250
7,100 Protective Life Corp. ............................................... 249,388
5,400 United Wisconsin Services, Inc. ..................................... 140,400
8,500 W.R. Berkley Corp. .................................................. 354,875
-------
2,959,551
-------
MACHINERY/ENGINEERING -- 3.1%
29,500 United Dominion Industries, Ltd. .................................... 678,500
-------
MANUFACTURING -- 11.1%
6,100 Alltrista Corp.*..................................................... 144,875
56,200 Baldwin Technology Co. (Class A)*.................................... 196,700
6,500 Briggs & Stratton Corp. ............................................. 267,312
8,000 Carlisle Companies, Inc. ............................................ 425,000
18,400 Crane Co. ........................................................... 754,400
16,000 Easco, Inc. ......................................................... 132,000
12,700 Exabyte Corp.*....................................................... 165,894
8,000 Harmon Industries, Inc. ............................................. 130,000
9,400 Singer Co. N.V. ..................................................... 190,350
-------
2,406,531
-------
PAPER PRODUCTS -- 2.7%
69,800 Repap Enterprises, Inc.*............................................. 266,113
21,000 Shorewood Packaging Corp.*........................................... 322,875
-------
588,988
-------
PRINTING/PUBLISHING -- 2.6%
15,300 International Imaging Materials, Inc.*............................... 363,375
12,400 Nu-Kote Holdings, Inc. (Class A)*.................................... 206,150
-------
569,525
-------
REAL ESTATE -- 4.6%
15,291 Cousins Properties, Inc. ............................................ 300,086
66 Security Capital Group, Inc. (A)..................................... 70,829
20,200 Security Capital Industrial Trust, Inc. ............................. 356,025
12,752 Security Capital Pacific Trust....................................... 277,356
-------
1,004,296
-------
</TABLE>

<PAGE> 30

OCC ACCUMULATION TRUST
SMALL CAP PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)

JUNE 30, 1996

<TABLE>
<CAPTION>
SHARES VALUE
-------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
RETAIL -- .6%
8,500 Maxim Group, Inc.*................................................... $ 120,062
-------
TECHNOLOGY -- .4%
4,500 Unitrode Corp.*...................................................... 87,188
-------
TELECOMMUNICATIONS -- 1.1%
10,100 ECI Telecom, Ltd. ................................................... 234,825
-------
TEXTILES/APPAREL -- 3.1%
6,900 Culp, Inc. .......................................................... 93,150
11,000 Dyersburg Corp. ..................................................... 56,375
22,000 Westpoint Stevens, Inc. (Class A)*................................... 525,250
-------
674,775
-------
TOBACCO/BEVERAGES/FOOD PRODUCTS -- .4%
6,000 Sylvan Foods Holdings, Inc.*......................................... 80,250
-------
TRANSPORTATION -- 1.6%
9,200 Interpool, Inc. ..................................................... 167,900
11,100 MTL, Inc.*........................................................... 188,700
-------
356,600
-------
OTHER -- .7%
7,150 McGrath RentCorp..................................................... 160,875
-------
Total Common Stocks (cost -- $17,509,359).......................... $19,257,884
-------
Total Investments(B) (cost -- $19,489,518).................. 98.1% $21,259,418
Other Assets in Excess of Other Liabilities................. 1.9 422,093
----- -----------
Total Net Assets............................................ 100.0% $21,681,511
===== ===========
</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 AVERAGE FAIR VALUE AS OF
DESCRIPTION ACQUISITION AMOUNT SHARES COST JUNE 30, 1996
---------------------------------------------------- ----------- ------- ------ ------- ----------------
<S> <C> <C> <C> <C> <C>
Security Capital Group, Inc.
12.00%, 6/30/14................................... 9/16/94 $55,279 -- $ 91 $ 103
Security Capital Group, Inc.
Common Stock...................................... 9/16/94 -- 66 949 1,073
</TABLE>

(B) Aggregate gross unrealized appreciation for securities in which there is an
excess of value over tax cost is $2,234,902, aggregate gross unrealized
depreciation for securities in which there is an excess of tax cost over
value is $465,002, and net unrealized appreciation for Federal income tax
purposes is $1,769,900. Federal income tax basis of portfolio securities is
substantially the same as for financial reporting purposes.

See accompanying notes to financial statements.

<PAGE> 31

OCC ACCUMULATION TRUST
SMALL CAP PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED)

JUNE 30, 1996

<TABLE>
<S> <C>
ASSETS
Investments, at value (cost -- $19,489,518).................................... $21,259,418
Cash........................................................................... 1,001,509
Receivable from investments sold............................................... 125,908
Receivable from fund shares sold............................................... 46,889
Dividends receivable........................................................... 10,433
Interest receivable............................................................ 3,431
Other assets................................................................... 1,039
-----------
Total Assets................................................................. 22,448,627
-----------
LIABILITIES
Payable for investments purchased.............................................. 726,376
Payable for fund shares redeemed............................................... 11,908
Investment advisory fee payable................................................ 1,224
Other payables and accrued expenses............................................ 27,608
-----------
Total Liabilities............................................................ 767,116
-----------
NET ASSETS
Par value ($.01 per share)..................................................... 10,493
Paid-in-surplus................................................................ 19,203,007
Accumulated undistributed net investment income................................ 103,781
Accumulated undistributed net realized gain on investments..................... 594,330
Net unrealized appreciation on investments..................................... 1,769,900
-----------
Total Net Assets............................................................. $21,681,511
===========
Fund shares outstanding........................................................ 1,049,311
-----------
Net asset value per share...................................................... $ 20.66
===========
</TABLE>

See accompanying notes to financial statements.

<PAGE> 32

OCC ACCUMULATION TRUST
SMALL CAP PORTFOLIO
STATEMENT OF OPERATIONS (UNAUDITED)

FOR THE SIX MONTHS ENDED JUNE 30, 1996

<TABLE>
<S> <C>
INVESTMENT INCOME
Interest..................................................................... $ 94,808
Dividends.................................................................... 85,682
----------
Total investment income................................................... 180,490
----------
OPERATING EXPENSES
Investment advisory fees (note 2A)........................................... 61,821
Custodian fees (note 1G)..................................................... 11,706
Auditing, consulting and tax return preparation fees......................... 5,125
Transfer and dividend disbursing agent fees.................................. 4,676
Legal fees................................................................... 2,748
Reports and notices to shareholders.......................................... 862
Miscellaneous................................................................ 7,981
----------
Total operating expenses.................................................. 94,919
Less: Investment advisory fees waived (note 2A)........................... (15,218)
Less: Expense offset arrangement (note 1G)................................ (2,992)
----------
Net operating expenses............................................... 76,709
----------
Net investment income................................................ 103,781
----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET
Net realized gain on investments.......................................... 682,221
Net change in unrealized appreciation (depreciation) on investments....... 657,397
----------
Net realized gain and change in unrealized appreciation
(depreciation) on investments........................................ 1,339,618
----------
Net increase in net assets resulting from operations........................... $1,443,399
==========
</TABLE>

See accompanying notes to financial statements.

<PAGE> 33

OCC ACCUMULATION TRUST
SMALL CAP PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1996(1) DECEMBER 31, 1995
---------------- -----------------
<S> <C> <C>
OPERATIONS
Net investment income......................................... $ 103,781 $ 211,870
Net realized gain on investments.............................. 682,221 456,809
Net change in unrealized appreciation (depreciation) on
investments................................................. 657,397 1,189,804
----------- -----------
Net increase in net assets resulting from operations..... 1,443,399 1,858,483
----------- -----------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Net investment income......................................... (211,870) (29,623)
Net realized gains............................................ (544,700) (26,352)
----------- -----------
Total dividends and distributions to shareholders........ (756,570) (55,975)
----------- -----------
FUND SHARE TRANSACTIONS
Net proceeds from sales....................................... 6,003,124 7,801,061
Reinvestment of dividends and distributions................... 756,532 55,975
Cost of shares redeemed....................................... (1,769,366) (2,865,595)
----------- -----------
Net increase in net assets from fund share
transactions........................................... 4,990,290 4,991,441
----------- -----------
Total increase in net assets........................ 5,677,119 6,793,949
NET ASSETS
Beginning of period........................................... 16,004,392 9,210,443
----------- -----------
End of period (including undistributed net investment income
of $103,781 and $211,870, respectively)..................... $ 21,681,511 $16,004,392
=========== ===========
SHARES ISSUED AND REDEEMED
Issued........................................................ 295,324 427,444
Issued in reinvestment of dividends and distributions......... 38,520 3,289
Redeemed...................................................... (88,207) (156,903)
----------- -----------
Net increase............................................. 245,637 273,830
=========== ===========
</TABLE>

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

(1) Unaudited.

See accompanying notes to financial statements.

<PAGE> 34

OCC ACCUMULATION TRUST
SMALL CAP PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

JUNE 30, 1996

(1) ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

OCC Accumulation Trust (formerly 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 "Portfolio"),
the Global Equity Portfolio, the Managed Portfolio, the Bond Portfolio, the U.S.
Government Income Portfolio and the Money Market Portfolio. OpCap Advisors (the
"Adviser"), a majority-owned (99%) subsidiary of Oppenheimer Capital, serves as
the Trust's investment adviser. 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> 35

OCC ACCUMULATION TRUST
SMALL CAP PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

JUNE 30, 1996

(E) ALLOCATION OF EXPENSES

(F) USE OF ESTIMATES

(G) CUSTODY OFFSETS

(2) INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES

(B) Total brokerage commissions paid by the Portfolio for the six months ended
June 30, 1996, amounted to $24,371, of which Oppenheimer & Co., Inc., an
affiliate of the Adviser, received $9,245.

(3) PURCHASES AND SALES OF SECURITIES

For the six months ended June 30, 1996, purchases and sales of investment
securities, other than short-term securities were $9,533,471 and $5,079,529,
respectively.

(4) SPECIAL SHAREHOLDER MEETING

The Trust held a special meeting of its shareholders on April 15, 1996 to
vote on an amendment to the Investment Advisory Agreement between OpCap Advisors
and the Trust, resulting in an increase in the advisory fees for the Portfolio.
The following provides results of the matter voted on at the meeting:

<TABLE>
<CAPTION>
FOR AGAINST ABSTAIN
- ------- ------- -------
<S> <C> <C>
612,067 206,657 19,559
</TABLE>

<PAGE> 36

OCC ACCUMULATION TRUST
SMALL CAP PORTFOLIO
FINANCIAL HIGHLIGHTS

FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD:

<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED SEPTEMBER 16, 1994(2)
JUNE 30, 1996(1) DECEMBER 31, 1995 TO DECEMBER 31, 1994
----------------- ----------------- ---------------------
<S> <C> <C> <C>
Net asset value, beginning of period... $ 19.91 $ 17.38 $ 17.49
----------- ----------- ----------
Income from investment operations:
Net investment income.................. 0.09 0.26 0.06
Net realized and unrealized gain (loss)
on investments....................... 1.55 2.37 (0.17)
----------- ----------- ----------
Total from investment operations..... 1.64 2.63 (0.11)
----------- ----------- ----------
Dividends and distributions to
shareholders:
Dividends to shareholders from net
investment income.................... (0.25) (0.05) --
Distributions to shareholders from net
realized capital gains............... (0.64) (0.05) --
----------- ----------- ----------
Total dividends and distributions.... (0.89) (0.10) --
----------- ----------- ----------
Net asset value, end of period......... $ 20.66 $ 19.91 $ 17.38
=========== =========== ==========
Total return(3)........................ 8.5% 15.2% (0.6%)
=========== =========== ==========
Net assets, end of period.............. $21,681,511 $16,004,392 $ 9,210,443
----------- ----------- ----------
Ratio of net operating expenses to
average net assets(7)................ 0.87%(4,5,6) 0.74% 0.74%(4)
----------- ----------- ----------
Ratio of net investment income to
average net assets(7)................ 1.14%(4,5) 1.75% 1.22%(4)
----------- ----------- ----------
Portfolio turnover..................... 33% 69% 32%
----------- ----------- ----------
Average commission rate................ $ 0.05 -- --
----------- ----------- ----------
</TABLE>

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

(1) Unaudited.

(2) Commencement of operations.

(3) Assumes reinvestment of all dividends and distributions. Aggregate (not
annualized) total return is shown for any period shorter than one year.

(4) Annualized.

(5) Average net assets for the six months ended June 30, 1996 were $18,385,398.

(6) Does not reflect expense offsets.

(7) During the periods presented above, the Adviser waived a portion or all of
its fees and assumed a portion of the Portfolio's operating expenses.
Additionally, for the six months ended June 30, 1996, the Portfolio
benefited from an expense offset arrangement with its custodian bank. If
such waivers, assumptions and expense offsets had not been in effect, the
ratios of net operating expenses to average net assets would have been
1.04%, 0.99% and 1.64%, respectively, and the ratios of net investment
income to average net assets would have been 0.94%, 1.50% and 0.32%,
respectively.

<PAGE> 37

OCC ACCUMULATION TRUST
MANAGED PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1996
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ---------- ------------
<C> <S> <C>
U.S. GOVERNMENT AGENCY NOTE -- .9%
$1,200,000 Federal Home Loan Bank, 5.27%, 7/10/96 (cost -- $1,198,419)....... $ 1,198,419
------------
SHORT-TERM CORPORATE NOTES -- 14.2%
AUTOMOTIVE -- 4.6%
$5,850,000 Ford Motor Credit Co., 5.36%, 7/31/96............................. $ 5,823,870
------------
CONGLOMERATES -- 3.0%
General Electric Capital Corp.,
400,000 5.27%, 7/1/96................................................... 400,000
3,450,000 5.28%, 7/1/96................................................... 3,450,000
------------
3,850,000
------------
MISCELLANEOUS FINANCIAL SERVICES -- 6.6%
Beneficial Corp.,
1,500,000 5.22%, 7/1/96................................................... 1,500,000
800,000 5.29%, 7/1/96................................................... 800,000
Household Finance Corp.,
1,400,000 5.29%, 7/8/96................................................... 1,398,560
500,000 5.34%, 7/8/96................................................... 499,481
Merrill Lynch & Co., Inc.,
1,700,000 5.28%, 7/15/96.................................................. 1,696,509
1,008,000 5.29%, 7/15/96.................................................. 1,005,926
280,000 5.33%, 7/15/96.................................................. 279,420
1,200,000 5.35%, 7/15/96.................................................. 1,197,503
------------
8,377,399
------------
Total Short-Term Corporate Notes (cost -- $18,051,269).......... $ 18,051,269
------------
U.S. TREASURY NOTES AND BONDS -- 1.3%
$ 700,000 6.25%, 8/15/23.................................................... $ 634,592
630,000 7.875%, 4/15/98................................................... 648,604
297,500 7.875%, 8/15/01................................................... 315,162
------------
Total U.S. Treasury Notes and Bonds (cost -- $1,517,552)........ $ 1,598,358
------------
CONVERTIBLE CORPORATE BOND -- .5%
REAL ESTATE -- .5%
Security Capital Group, Inc., 12.00%, 6/30/14 (A)
$ 641,868 (cost -- $585,005)................................................ $ 657,830
------------

<CAPTION>
SHARES
<C> <S> <C>
CONVERTIBLE PREFERRED STOCK -- .0%
RETAIL -- .0%
2,478 Venture Stores, Inc., $3.25 Conv. Pfd. (cost -- $102,527)......... $ 65,357
------------
</TABLE>

<PAGE> 38

OCC ACCUMULATION TRUST
MANAGED PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1996

<TABLE>
<CAPTION>
SHARES VALUE
------------
<C> <S> <C>
COMMON STOCKS -- 82.9%
AEROSPACE/DEFENSE -- 8.0%
49,000 Lockheed Martin Corp. ............................................ $ 4,116,000
126,000 McDonnell Douglas Corp. .......................................... 6,111,000
------------
10,227,000
------------
BANKING -- 16.9%
76,000 Citicorp.......................................................... 6,279,500
10,000 First Empire State Corp. ......................................... 2,410,000
51,200 Mellon Bank Corp. ................................................ 2,918,400
41,200 Wells Fargo & Co. ................................................ 9,841,650
------------
21,449,550
------------
CHEMICALS -- 6.4%
62,000 du Pont (E.I.) de Nemours & Co. .................................. 4,905,750
36,000 Hercules, Inc. ................................................... 1,989,000
40,000 Monsanto Co. ..................................................... 1,300,000
------------
8,194,750
------------
CONSUMER PRODUCTS -- 5.1%
173,200 Mattel, Inc. ..................................................... 4,957,850
45,000 Reebok International Ltd. ........................................ 1,513,125
------------
6,470,975
------------
DRUGS & MEDICAL PRODUCTS -- 2.2%
35,000 Becton, Dickinson & Co............................................ 2,808,750
------------
ENERGY -- 5.3%
10,000 MAPCO, Inc. ...................................................... 563,750
94,200 Tenneco, Inc. .................................................... 4,815,975
29,000 Triton Energy Ltd.*............................................... 1,410,125
------------
6,789,850
------------
INSURANCE -- 5.6%
51,400 EXEL Ltd. ........................................................ 3,623,700
15,400 Transamerica Corp. ............................................... 1,247,400
49,500 Travelers, Inc. .................................................. 2,258,438
------------
7,129,538
------------
MANUFACTURING -- 1.1%
110,000 Shaw Industries, Inc. ............................................ 1,443,750
------------
METALS & MINING -- 4.1%
165,000 Freeport McMoRan Copper & Gold (Class B).......................... 5,259,375
------------
</TABLE>

<PAGE> 39

OCC ACCUMULATION TRUST
MANAGED PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1996

<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
MISCELLANEOUS FINANCIAL SERVICES -- 12.8%
55,000 American Express Co. ............................................. $ 2,454,375
157,500 Countrywide Credit Industries, Inc. .............................. 3,898,125
66,100 Federal Home Loan Mortgage Corp. ................................. 5,651,550
126,000 Federal National Mortgage Assoc. ................................. 4,221,000
------------
16,225,050
------------
PAPER PRODUCTS -- 2.6%
80,000 Champion International Corp. ..................................... 3,340,000
------------
RAILROADS -- 3.5%
64,000 Union Pacific Corp. .............................................. 4,472,000
------------
REAL ESTATE -- .7%
811 Security Capital Group, Inc.(A)................................... 870,341
------------
TECHNOLOGY -- 6.9%
70,000 Intel Corp. ...................................................... 5,140,625
150,000 National Semiconductor Corp.*..................................... 2,325,000
70,000 Unitrode Corp.*................................................... 1,356,250
------------
8,821,875
------------
TELECOMMUNICATIONS -- 1.7%
50,000 Sprint Corp. ..................................................... 2,100,000
------------
Total Common Stocks (cost -- $78,734,260)....................... $105,602,804
------------
Total Investments(B) (cost -- $100,189,032)............... 99.8% $127,174,037
Other Assets in Excess of Other Liabilities............... .2 246,757
------ ------------
Total Net Assets.......................................... 100.0% $127,420,794
====== ============
</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 AVERAGE FAIR VALUE AS OF
DESCRIPTION ACQUISITION AMOUNT SHARES COST JUNE 30, 1996
--------------------------------------------------- ----------- -------- ------ ------- ----------------
<S> <C> <C> <C> <C> <C>
Security Capital Group, Inc.
12.00%, 6/30/14.................................. 9/16/94 $641,868 -- $ 91 $ 103
Security Capital Group, Inc.
Common Stock..................................... 9/16/94 -- 811 949 1,073
</TABLE>

(B) Aggregate gross unrealized appreciation for securities in which there is an
excess of value over tax cost is $27,613,293, aggregate gross unrealized
depreciation for securities in which there is an excess of tax cost over
value is $628,288 and net unrealized appreciation for Federal income tax
purposes is $26,985,005. Federal income tax basis of portfolio securities is
substantially the same as for financial reporting purposes.

See accompanying notes to financial statements.

<PAGE> 40

OCC ACCUMULATION TRUST
MANAGED PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED)

JUNE 30, 1996

<TABLE>
<S> <C>
ASSETS
Investments, at value (cost -- $100,189,032).................................. $127,174,037
Cash.......................................................................... 46,598
Receivable from fund shares sold.............................................. 123,879
Interest receivable........................................................... 74,448
Dividends receivable.......................................................... 72,491
Other assets.................................................................. 4,153
------------
Total Assets................................................................ 127,495,606
------------
LIABILITIES
Investment advisory fee payable............................................... 5,971
Payable for fund shares redeemed.............................................. 4,792
Other payables and accrued expenses........................................... 64,049
------------
Total Liabilities........................................................... 74,812
------------
NET ASSETS
Par value ($.01 per share).................................................... 39,687
Paid-in-surplus............................................................... 97,100,542
Accumulated undistributed net investment income............................... 931,550
Accumulated undistributed net realized gain on investments.................... 2,364,010
Net unrealized appreciation on investments.................................... 26,985,005
------------
Total Net Assets............................................................ $127,420,794
===========
Fund shares outstanding....................................................... 3,968,679
------------
Net asset value per share..................................................... $ 32.11
===========
</TABLE>

See accompanying notes to financial statements.

<PAGE> 41

OCC ACCUMULATION TRUST
MANAGED PORTFOLIO
STATEMENT OF OPERATIONS (UNAUDITED)

FOR THE SIX MONTHS ENDED JUNE 30, 1996

<TABLE>
<S> <C>
INVESTMENT INCOME
Dividends..................................................................... $ 889,889
Interest...................................................................... 477,554
----------
Total investment income.................................................... 1,367,443
----------
OPERATING EXPENSES
Investment advisory fees (note 2A)............................................ 376,874
Custodian fees (note 1G)...................................................... 14,642
Trustees' fees and expenses................................................... 12,895
Auditing, consulting and tax return preparation fees.......................... 6,182
Legal fees.................................................................... 5,804
Transfer and dividend disbursing agent fees................................... 5,584
Reports and notices to shareholders........................................... 4,746
Miscellaneous................................................................. 24,317
----------
Total operating expenses................................................... 451,044
Less: Investment advisory fees waived (note 2A)............................ (13,361)
Less: Expense offset arrangement (note 1G)................................. (1,791)
----------
Net operating expenses................................................ 435,892
----------
Net investment income................................................. 931,551
----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET
Net realized gain on investments........................................... 2,364,010
Net change in unrealized appreciation (depreciation) on investments........ 5,659,084
----------
Net realized gain and change in unrealized appreciation (depreciation)
on investments........................................................ 8,023,094
----------
Net increase in net assets resulting from operations............................ $8,954,645
==========
</TABLE>

See accompanying notes to financial statements.

<PAGE> 42

OCC ACCUMULATION TRUST
MANAGED PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1996(1) DECEMBER 31, 1995
---------------- -----------------
<S> <C> <C>
OPERATIONS
Net investment income........................................ $ 931,551 $ 1,378,069
Net realized gain on investments............................. 2,364,010 1,023,914
Net change in unrealized appreciation (depreciation) on
investments................................................ 5,659,084 23,901,028
---------------- -----------------
Net increase in net assets resulting from operations.... 8,954,645 26,303,011
---------------- -----------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Net investment income........................................ (1,378,070) (360,801)
Net realized gains........................................... (878,874) --
---------------- -----------------
Total dividends and distributions to shareholders....... (2,256,944) (360,801)
---------------- -----------------
FUND SHARE TRANSACTIONS
Net proceeds from sales...................................... 33,904,852 27,913,098
Reinvestment of dividends and distributions.................. 2,256,944 360,801
Cost of shares redeemed...................................... (14,626,850) (9,971,333)
---------------- -----------------
Net increase in net assets from fund share
transactions.......................................... 21,534,946 18,302,566
---------------- -----------------
Total increase in net assets....................... 28,232,647 44,244,776
NET ASSETS
Beginning of period.......................................... 99,188,147 54,943,371
---------------- -----------------
End of period (including undistributed net investment income
of $931,550 and $1,378,069, respectively).................. $127,420,794 $99,188,147
============= =============
SHARES ISSUED AND REDEEMED
Issued....................................................... 1,077,771 1,016,970
Issued in reinvestment of dividends and distributions........ 73,016 15,866
Redeemed..................................................... (472,857) (379,452)
---------------- -----------------
Net increase............................................ 677,930 653,384
============= =============
</TABLE>

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

(1) Unaudited.

See accompanying notes to financial statements.

<PAGE> 43

OCC ACCUMULATION TRUST
MANAGED PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

JUNE 30, 1996

(1) ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

OCC Accumulation Trust (formerly 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 "Portfolio"), the Bond Portfolio, the U.
S. Government Income Portfolio and the Money Market Portfolio. OpCap Advisors
(the "Adviser"), a majority-owned (99%) subsidiary of Oppenheimer Capital,
serves as the Trust's investment adviser. 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> 44

OCC ACCUMULATION TRUST
MANAGED PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

JUNE 30, 1996

(E) ALLOCATION OF EXPENSES

(F) USE OF ESTIMATES

(G) CUSTODY OFFSETS

(2) INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES

(B) Total brokerage commissions paid by the Portfolio for the six months ended
June 30, 1996, amounted to $41,669, of which Oppenheimer & Co., Inc., an
affiliate of the Adviser, received $14,398.

(3) PURCHASES AND SALES OF SECURITIES

For the six months ended June 30, 1996, purchases and sales of investment
securities, other than short-term securities were $30,348,625 and $15,349,679,
respectively.

(4) SPECIAL SHAREHOLDER MEETING

The Trust held a special meeting of its shareholders on April 15, 1996 to
vote on an amendment to the Investment Advisory Agreement between OpCap Advisors
and the Trust, resulting in an increase in the advisory fees for the Portfolio.
The following provides results of the matter voted on at the meeting:

<TABLE>
<CAPTION>
FOR AGAINST ABSTAIN
- --------- ------- -------
<S> <C> <C>
2,468,442 601,073 201,753
</TABLE>

<PAGE> 45

OCC ACCUMULATION TRUST
MANAGED PORTFOLIO
FINANCIAL HIGHLIGHTS

FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD:

<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED SEPTEMBER 16, 1994(2)
JUNE 30, 1996(1) DECEMBER 31, 1995 TO DECEMBER 31, 1994
---------------- ----------------- ---------------------
<S> <C> <C> <C>
Net asset value, beginning of period.... $ 30.14 $ 20.83 $ 21.80
---------------- ----------------- ---------------------
Income from investment operations:
Net investment income................... 0.23 0.42 0.14
Net realized and unrealized gain (loss)
on investments........................ 2.41 9.02 (1.11)
---------------- ----------------- ---------------------
Total from investment operations...... 2.64 9.44 (0.97)
---------------- ----------------- ---------------------
Dividends and distributions to
shareholders:
Dividends to shareholders from net
investment income..................... (0.41) (0.13) --
Distributions to shareholders from net
realized capital gains................ (0.26) -- --
---------------- ----------------- ---------------------
Total dividends and distributions to
shareholders....................... (0.67) (0.13) 0.00
---------------- ----------------- ---------------------
Net asset value, end of period.......... $ 32.11 $ 30.14 $ 20.83
============= ============= ================
Total return(3)......................... 8.9% 45.6% (4.4%)
============= ============= ================
Net assets, end of period............... $127,420,794 $99,188,147 $54,943,371
---------------- ----------------- ---------------------
Ratio of net operating expenses to
average net assets(7)................. 0.78%(4,5,6) 0.66% 0.66%(4)
---------------- ----------------- ---------------------
Ratio of net investment income to
average net assets(7)................. 1.67%(4,5) 1.85% 2.34%(4)
---------------- ----------------- ---------------------
Portfolio turnover...................... 16% 22% 8%
---------------- ----------------- ---------------------
Average commission rate................. $ 0.06 -- --
---------------- ----------------- ---------------------
</TABLE>

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

(1) Unaudited.

(2) Commencement of operations.

(3) Assumes reinvestment of all dividends and distributions. Aggregate (not
annualized) total return is shown for any period shorter than one year.

(4) Annualized.

(5) Average net assets for the six months ended June 30, 1996 were $112,431,879.

(6) Does not reflect expense offsets.

(7) During the periods presented above, the Adviser waived a portion of its
fees. Additionally, for the six months ended June 30, 1996, the Portfolio
benefited from an expense offset arrangement with its custodian bank. If
such waivers and expense offsets had not been in effect, the ratios of net
operating expenses to average net assets would have been 0.81%, 0.74% and
0.96%, respectively, and the ratios of net investment income to average net
assets would have been 1.64%, 1.77%, and 2.04%, respectively.

<PAGE> 46

OCC ACCUMULATION TRUST
BOND PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1996

<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- --------- ----------
<C> <S> <C>
U.S. TREASURY NOTES AND BONDS -- 28.3%
$ 250,000 5.75%, 10/31/97....................................................... $ 249,375
325,000 6.50%, 8/15/97........................................................ 327,132
175,000 7.25%, 11/30/96....................................................... 176,230
375,000 7.25%, 8/15/22........................................................ 383,966
175,000 10.375%, 11/15/12..................................................... 222,168
----------
Total U.S. Treasury Notes and Bonds (cost -- $1,393,262)............ $1,358,871
----------
U.S. GOVERNMENT AGENCY NOTES AND BONDS -- 5.5%
$ 15,000 Federal National Mortgage Assoc., 5.19%, 7/8/96....................... $ 14,985
250,000 Tennessee Valley Authority, 5.98%, 4/1/36............................. 250,658
----------
Total U.S. Government Agency Notes and Bonds (cost -- $264,985)..... $ 265,643
----------
MORTGAGE-RELATED SECURITIES -- 29.0%
$ 110,235 Federal Home Loan Mortgage Corp., 8.50%, 10/15/19..................... $ 112,336
Federal National Mortgage Assoc.,
323,703 6.50%, 5/1/26....................................................... 302,763
130,118 7.00%, 1/1/99....................................................... 128,369
210,236 7.00%, 1/1/10....................................................... 208,285
249,570 8.00%, 8/1/24....................................................... 251,754
8,878 9.00%, 8/1/02....................................................... 9,219
23,496 9.50%, 12/1/06...................................................... 24,693
84,306 9.50%, 12/1/19...................................................... 90,049
Government National Mortgage Assoc.,
144,978 8.50%, 3/15/25...................................................... 149,054
108,721 8.50%, 5/15/26...................................................... 111,778
----------
Total Mortgage-Related Securities (cost -- $1,378,891).............. $1,388,300
CORPORATE NOTES & BONDS -- 35.7%
AUTOMOTIVE -- 8.8%
$ 175,000 Chrysler Financial Corp., 8.42%, 2/1/99............................... $ 182,635
225,000 General Motors Acceptance Corp., 8.25%, 2/24/04....................... 238,365
----------
421,000
----------
CONGLOMERATES -- 4.4%
200,000 General Electric Capital Corp., 8.375%, 3/1/01........................ 212,332
----------
</TABLE>

<PAGE> 47

OCC ACCUMULATION TRUST
BOND PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1996

<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
----------
<C> <S> <C>
CORPORATE NOTES & BONDS (CONTINUED)
MISCELLANEOUS FINANCIAL SERVICES -- 18.3%
$ 200,000 Associates Corp., N.A., 5.25%, 3/30/00................................ $ 189,786
100,000 BarclaysAmerican Corp., 7.875%, 8/15/98............................... 102,630
250,000 Bear Stearns Cos. Inc., 6.625%, 1/4/15................................ 238,825
150,000 Household Finance Corp., 6.875%, 3/1/03............................... 148,382
200,000 International Lease Finance Corp., 6.125%, 11/1/99.................... 195,804
----------
875,427
----------
RETAIL -- 4.2%
200,000 Sears Roebuck & Co., 8.55%, 8/1/96.................................... 200,416
----------
Total Corporate Notes & Bonds (cost -- $1,690,854).................. $1,709,175
----------
Total Investments(A) (cost -- $4,727,992).................... 98.5% $4,721,989
Other Assets in Excess of Other Liabilities.................. 1.5 72,294
----- ----------
Total Net Assets............................................. 100.0% $4,794,283
===== ==========
</TABLE>

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

(A) Aggregate gross unrealized appreciation for securities in which there is an
excess of value over tax cost is $49,698, aggregate gross unrealized
depreciation for securities in which there is an excess of tax cost over value
is $55,701, and net unrealized depreciation for Federal income tax purposes is
$6,003. Federal income tax basis of portfolio securities is substantially the
same as for financial reporting purposes.

See accompanying notes to financial statements.

<PAGE> 48

OCC ACCUMULATION TRUST
BOND PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED)

JUNE 30, 1996

<TABLE>
<S> <C>
ASSETS
Investments, at value (cost -- $4,727,992)...................................... $4,721,989
Cash............................................................................ 16,545
Interest receivable............................................................. 76,364
Receivable from Adviser......................................................... 111
Other assets.................................................................... 608
----------
Total Assets.................................................................. 4,815,617
----------
LIABILITIES
Dividends payable............................................................... 7,746
Other payables and accrued expenses............................................. 13,588
----------
Total Liabilities............................................................. 21,334
----------
NET ASSETS
Par value ($.01 per share)...................................................... 5,086
Paid-in-surplus................................................................. 4,813,218
Accumulated net realized loss on investments.................................... (18,018)
Net unrealized depreciation on investments...................................... (6,003)
----------
Total Net Assets.............................................................. $4,794,283
=========
Fund shares outstanding......................................................... 508,586
----------
Net asset value per share....................................................... $ 9.43
=========
</TABLE>

See accompanying notes to financial statements.

<PAGE> 49

OCC ACCUMULATION TRUST
BOND PORTFOLIO
STATEMENT OF OPERATIONS (UNAUDITED)

FOR THE SIX MONTHS ENDED JUNE 30, 1996

<TABLE>
<S> <C>
INVESTMENT INCOME
Interest....................................................................... $ 160,715
---------
OPERATING EXPENSES
Investment advisory fees (note 2).............................................. 12,172
Custodian fees (note 1G)....................................................... 8,937
Auditing, consulting and tax return preparation fees........................... 5,027
Transfer and dividend disbursing agent fees.................................... 4,548
Legal fees..................................................................... 1,652
Reports and notices to shareholders............................................ 365
Miscellaneous.................................................................. 3,289
---------
Total operating expenses.................................................... 35,990
Less: Investment advisory fees waived (note 2).............................. (10,869)
Less: Expense offset arrangement (note 1G).................................. (766)
---------
Net operating expenses................................................. 24,355
---------
Net investment income.................................................. 136,360
---------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET
Net realized loss on investments............................................ (17,880)
Net change in unrealized appreciation (depreciation) on investments......... (201,321)
---------
Net realized loss and change in unrealized appreciation (depreciation)
on investments......................................................... (219,201)
---------
Net decrease in net assets resulting from operations............................. $ (82,841)
=========
</TABLE>

See accompanying notes to financial statements.

<PAGE> 50

OCC ACCUMULATION TRUST
BOND PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1996(1) DECEMBER 31, 1995
---------------- -----------------
<S> <C> <C>
OPERATIONS
Net investment income........................................ $ 136,360 $ 244,328
Net realized gain (loss) on investments...................... (17,880) 79,769
Net change in unrealized appreciation (depreciation) on
investments................................................ (201,321) 269,489
---------------- -----------------
Net increase (decrease) in net assets resulting from
operations............................................ (82,841) 593,586
---------------- -----------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Net investment income........................................ (136,360) (244,328)
Net realized gains........................................... (75,648) --
---------------- -----------------
Total dividends and distributions to shareholders....... (212,008) (244,328)
---------------- -----------------
FUND SHARE TRANSACTIONS
Net proceeds from sales...................................... 1,039,373 1,574,585
Reinvestment of dividends and distributions.................. 205,854 242,735
Cost of shares redeemed...................................... (440,550) (1,537,477)
---------------- -----------------
Net increase in net assets from fund share
transactions.......................................... 804,677 279,843
---------------- -----------------
Total increase in net assets....................... 509,828 629,101
NET ASSETS
Beginning of period.......................................... 4,284,455 3,655,354
---------------- -----------------
End of period................................................ $4,794,283 $ 4,284,455
============= =============
SHARES ISSUED AND REDEEMED
Issued....................................................... 104,760 165,081
Issued in reinvestment of dividends and distributions........ 21,347 25,011
Redeemed..................................................... (46,262) (158,718)
---------------- -----------------
Net increase............................................ 79,845 31,374
============= =============
</TABLE>

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

(1) Unaudited.

See accompanying notes to financial statements.

<PAGE> 51

OCC ACCUMULATION TRUST
BOND PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

JUNE 30, 1996

(1) ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

OCC Accumulation Trust (formerly 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 "Portfolio"), the U.S.
Government Income Portfolio and the Money Market Portfolio. OpCap Advisors (the
"Adviser"), a majority-owned (99%) subsidiary of Oppenheimer Capital, serves as
the Trust's investment adviser. 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. Investment debt securities 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 sixty days or less are valued at amortized cost
or amortized value, 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

Investment transactions are accounted for on the trade date. In determining
the gain or loss from the sale of investments, the cost of investments 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-
in-surplus or tax return of capital. At June 30, 1996, the Portfolio did not
have any permanent book-tax differences.

<PAGE> 52

OCC ACCUMULATION TRUST
BOND PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

JUNE 30, 1996

(1) ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(E) ALLOCATION OF EXPENSES

(F) USE OF ESTIMATES

(G) CUSTODY OFFSETS

(2) INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES

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%.

(3) PURCHASES AND SALES OF SECURITIES

For the six months ended June 30, 1996, purchases and sales of investment
securities, other than short-term securities were $3,839,327 and $2,995,433,
respectively.

<PAGE> 53

OCC ACCUMULATION TRUST
BOND PORTFOLIO
FINANCIAL HIGHLIGHTS

FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD:

<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED SEPTEMBER 16, 1994(2)
JUNE 30, 1996(1) DECEMBER 31, 1995 TO DECEMBER 31, 1994
---------------- ----------------- ---------------------
<S> <C> <C> <C>
Net asset value, beginning of period.... $ 9.99 $ 9.20 $ 9.40
---------------- ----------------- ---------------------
Income from investment operations:
Net investment income................... 0.27 0.58 0.17
Net realized and unrealized gain (loss)
on investments........................ (0.41) 0.79 (0.20)
---------------- ----------------- ---------------------
Total from investment operations...... (0.14) 1.37 (0.03)
---------------- ----------------- ---------------------
Dividends and distributions to
shareholders:
Dividends to shareholders from net
investment income..................... (0.27) (0.58) (0.17)
Distributions to shareholders from net
realized capital gains................ (0.15) -- --
---------------- ----------------- ---------------------
Total dividends and distributions..... (0.42) (0.58) (0.17)
---------------- ----------------- ---------------------
Net asset value, end of period.......... $ 9.43 $ 9.99 $ 9.20
============= ============= ================
Total return(3)......................... (1.5%) 15.2% (0.3%)
============= ============= ================
Net assets, end of period............... $4,794,283 $ 4,284,455 $ 3,655,354
---------------- ----------------- ---------------------
Ratio of net operating expenses to
average net assets(7)................. 1.03%(4,5,6) 1.00% 1.00%(4)
---------------- ----------------- ---------------------
Ratio of net investment income to
average net assets(7)................. 5.60%(4,5) 5.95% 6.26%(4)
---------------- ----------------- ---------------------
Portfolio turnover...................... 65% 134% 7%
---------------- ----------------- ---------------------
</TABLE>

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

(1) Unaudited.

(2) Commencement of operations.

(3) Assumes reinvestment of all dividends and distributions. Aggregate (not
annualized) total return is shown for any period shorter than one year.

(4) Annualized.

(5) Average net assets for the six months ended June 30, 1996 were $4,895,458.

(6) Does not reflect expense offsets.

(7) During the periods presented above, the Adviser waived a portion or all of
its fees and assumed a portion of the Portfolio's operating expenses.
Additionally, for the six months ended June 30, 1996, the Portfolio
benefited from an expense offset arrangement with its custodian bank. If
such waivers, expense offsets and assumptions had not been in effect, the
ratios of net operating expenses to average net assets would have been
1.48%, 1.52% and 2.05%, respectively, and the ratios of net investment
income to average net assets would have been 5.12%, 5.43% and 5.21%,
respectively.

<PAGE> 54

OCC ACCUMULATION TRUST
MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)

JUNE 30, 1996

<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- --------- -----------
<C> <S> <C>
U.S. GOVERNMENT AGENCY NOTES -- 33.6%
Federal Farm Credit Bank,
$ 150,000 5.16%, 8/14/96........................................................ $ 149,054
100,000 5.20%, 7/17/96........................................................ 99,769
40,000 5.28%, 8/19/96........................................................ 39,713
Federal Home Loan Bank,
130,000 5.26%, 8/6/96......................................................... 129,316
110,000 5.28%, 7/8/96......................................................... 109,887
150,000 5.29%, 8/14/96........................................................ 149,030
Federal Home Loan Mortgage Corp.,
100,000 5.17%, 7/5/96......................................................... 99,943
135,000 5.21%, 7/9/96......................................................... 134,843
Federal National Mortgage Assoc.,
100,000 5.15%, 7/30/96........................................................ 99,585
70,000 5.17%, 7/24/96........................................................ 69,769
30,000 5.25%, 7/18/96........................................................ 29,926
110,000 5.30%, 8/26/96........................................................ 109,093
45,000 5.37%, 12/17/96....................................................... 43,866
----------
Total U.S. Government Agency Notes (amortized cost -- $1,263,794)..... $ 1,263,794
----------
SHORT-TERM CORPORATE NOTES -- 66.4%
AUTOMOTIVE -- 9.6%
$ 110,000 Daimer-Benz North America Corp., 5.38%, 9/10/96....................... $ 108,833
130,000 Ford Motor Credit Co., 5.28%, 8/12/96................................. 129,199
125,000 General Motors Acceptance Corp., 5.33%, 7/8/96........................ 124,870
----------
362,902
----------
BANKING -- 6.6%
125,000 Morgan (J.P.) & Co. Inc., 5.30%, 7/11/96.............................. 124,816
125,000 Svenska Handelsbanken, 5.50%, 12/16/96................................ 121,792
----------
246,608
----------
CONGLOMERATES -- 3.5%
130,000 General Electric Capital Corp., 5.23%, 7/1/96......................... 130,000
----------
ENTERTAINMENT -- 2.9%
110,000 Walt Disney Co., 5.27%, 7/2/96........................................ 109,984
----------
INSURANCE -- 3.5%
135,000 Prudential Funding Corp., 5.27%, 7/9/96............................... 134,842
----------
MACHINERY -- 3.4%
130,000 Deere (John) Capital Corp., 5.34%, 8/12/96............................ 129,190
----------
</TABLE>

<PAGE> 55

OCC ACCUMULATION TRUST
MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)

JUNE 30, 1996

<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- -------- ----------
<C> <S> <C>
SHORT-TERM CORPORATE NOTES (CONTINUED)
MISCELLANEOUS FINANCIAL SERVICES -- 18.8%
$ 125,000 American Express Credit Corp., 5.31%, 9/3/96.......................... $ 123,820
130,000 Beneficial Corp., 5.33%, 7/18/96...................................... 129,673
100,000 CIT Group Holdings Inc., 5.27%, 7/15/96............................... 99,795
125,000 Eksportfinans A/S, 5.33%, 7/22/96..................................... 124,611
125,000 Merrill Lynch & Co., Inc., 5.27%, 7/11/96............................. 124,817
105,000 Transamerica Finance Corp., 5.39%, 8/13/96............................ 104,324
----------
707,040
----------
TECHNOLOGY -- 2.7%
100,000 IBM Credit Corp., 5.38%, 7/15/96...................................... 99,791
----------
TELECOMMUNICATIONS -- 9.7%
120,000 American Telephone & Telegraph Co., 5.41%, 8/9/96..................... 119,297
115,000 Ameritech Corp., 5.28%, 8/9/96........................................ 114,342
130,000 BellSouth Telecommunications Inc., 5.32%, 7/23/96..................... 129,577
----------
363,216
----------
TOBACCO/BEVERAGES/FOOD PRODUCTS -- 5.7%
100,000 Coca Cola Co., 5.31%, 8/7/96.......................................... 99,454
115,000 Philip Morris Cos., Inc., 5.30%, 7/12/96.............................. 114,814
----------
214,268
----------
Total Short-Term Corporate Notes (amortized cost -- $2,497,841)..... $2,497,841
----------
Total Investments(A) (amortized cost -- $3,761,635).......... 100.0% $3,761,635
Other Liabilities in Excess of Other Assets.................. (0.0) (261)
----- ----------
Total Net Assets............................................. 100.0% $3,761,374
===== =========
</TABLE>

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

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

See accompanying notes to financial statements.

<PAGE> 56

OCC ACCUMULATION TRUST
MONEY MARKET PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED)

JUNE 30, 1996

<TABLE>
<S> <C>
ASSETS
Investments, at value (amortized cost -- $3,761,635)............................ $3,761,635
Cash............................................................................ 13,933
Receivable from Adviser......................................................... 1,337
Other assets.................................................................... 599
----------
Total Assets.................................................................. 3,777,504
----------
LIABILITIES
Dividends payable............................................................... 4,695
Other payables and accrued expenses............................................. 11,435
----------
Total Liabilities............................................................. 16,130
----------
NET ASSETS
Par value ($.01 per share)...................................................... 37,612
Paid-in-surplus................................................................. 3,723,774
Accumulated net realized loss on investments.................................... (12)
----------
Total Net Assets.............................................................. $3,761,374
=========
Fund shares outstanding......................................................... 3,761,160
----------
Net asset value per share....................................................... $ 1.00
=========
</TABLE>

See accompanying notes to financial statements.

<PAGE> 57

OCC ACCUMULATION TRUST
MONEY MARKET PORTFOLIO
STATEMENT OF OPERATIONS (UNAUDITED)

FOR THE SIX MONTHS ENDED JUNE 30, 1996

<TABLE>
<S> <C>
INVESTMENT INCOME
Interest........................................................................ $105,458
--------
OPERATING EXPENSES
Investment advisory fees (note 2)............................................... 7,818
Custodian fees (note 1G)........................................................ 7,775
Auditing, consulting and tax return preparation fees............................ 5,125
Transfer and dividend disbursing agent fees..................................... 4,535
Legal fees...................................................................... 1,443
Reports and notices to shareholders............................................. 396
Miscellaneous................................................................... 1,861
--------
Total operating expenses..................................................... 28,953
Less: Investment advisory fees waived and expenses assumed (note 2).......... (8,955)
Less: Expense offset arrangement (note 1G)................................... (428)
--------
Net operating expenses.................................................. 19,570
--------
Net investment income................................................... 85,888
REALIZED LOSS ON INVESTMENTS -- NET
Net realized loss on investments............................................. (13)
--------
Net increase in net assets resulting from operations.............................. $ 85,875
========
</TABLE>

See accompanying notes to financial statements.

<PAGE> 58

OCC ACCUMULATION TRUST
MONEY MARKET PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1996(1) DECEMBER 31, 1995
---------------- -----------------
<S> <C> <C>
OPERATIONS
Net investment income........................................ $ 85,888 $ 203,353
Net realized gain (loss) on investments...................... (13) 47
---------------- -----------------
Net increase in net assets resulting from operations.... 85,875 203,400
---------------- -----------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Net investment income........................................ (85,662) (203,353)
Net realized gains........................................... (46) --
---------------- -----------------
Total dividends and distributions to shareholders....... (85,708) (203,353)
---------------- -----------------
FUND SHARE TRANSACTIONS
Net proceeds from sales...................................... 2,272,291 4,346,773
Reinvestment of dividends and distributions.................. 82,945 201,653
Cost of shares redeemed...................................... (2,950,113) (3,711,915)
---------------- -----------------
Net increase (decrease) in net assets from fund share
transactions.......................................... (594,877) 836,511
---------------- -----------------
Total increase (decrease) in net assets............ (594,710) 836,558
NET ASSETS
Beginning of period.......................................... 4,356,084 3,519,526
---------------- -----------------
End of period................................................ $ 3,761,374 $ 4,356,084
============= =============
SHARES ISSUED AND REDEEMED
Issued....................................................... 2,272,291 4,346,773
Issued in reinvestment of dividends and distributions........ 82,945 201,653
Redeemed..................................................... (2,950,113) (3,711,915)
---------------- -----------------
Net increase (decrease)................................. (594,877) 836,511
============= =============
</TABLE>

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

(1) Unaudited.

See accompanying notes to financial statements.

<PAGE> 59

OCC ACCUMULATION TRUST
MONEY MARKET PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

JUNE 30, 1996

(1) ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

OCC Accumulation Trust (formerly 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 (the "Portfolio"). OpCap Advisors (the
"Adviser"), a majority-owned (99%) subsidiary of Oppenheimer Capital, serves as
the Trust's investment adviser. 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

Investment transactions are accounted for on the trade date. In determining
the gain or loss from the sale of investments, the cost of investments 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.

(E) ALLOCATION OF EXPENSES

<PAGE> 60

OCC ACCUMULATION TRUST
MONEY MARKET PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

JUNE 30, 1996

(1) ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(F) USE OF ESTIMATES

(G) CUSTODY OFFSETS

(2) INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES

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 INVESTMENTS

For the six months ended June 30, 1996, purchases and sales/maturities of
investment securities, were $17,964,097 and $18,656,972, respectively.

<PAGE> 61

OCC ACCUMULATION TRUST
MONEY MARKET PORTFOLIO
FINANCIAL HIGHLIGHTS

FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD:

<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED SEPTEMBER 16, 1994(2)
JUNE 30, 1996(1) DECEMBER 31, 1995 TO DECEMBER 31, 1994
---------------- ----------------- ---------------------
<S> <C> <C> <C>
Net asset value, beginning of period...... $ 1.00 $ 1.00 $ 1.00
---------------- ----------------- ---------------------
Income from investment operations:
Net investment income..................... 0.02 0.05 0.01
Net realized gain (loss) on investments... (0.00) 0.00 --
---------------- ----------------- ---------------------
Total from investment operations........ 0.02 0.05 0.01
---------------- ----------------- ---------------------
Dividends and distributions to
shareholders:
Dividends to shareholders from net
investment income....................... (0.02) (0.05) (0.01)
Distributions to shareholders from net
realized capital gains.................. (0.00) -- --
---------------- ----------------- ---------------------
Total dividends and distributions....... (0.02) (0.05) (0.01)
---------------- ----------------- ---------------------
Net asset value, end of period............ $ 1.00 $ 1.00 $ 1.00
============= ============= ================
Total return(3)........................... 2.2% 5.1% 1.2%
============= ============= ================
Net assets, end of period................. $3,761,374 $ 4,356,084 $ 3,519,526
---------------- ----------------- ---------------------
Ratio of net operating expenses to average
net assets(7)........................... 1.02%(4,5,6) 1.00% 1.00%(4)
---------------- ----------------- ---------------------
Ratio of net investment income to average
net assets(7)........................... 4.39%(4,5) 4.94% 4.13%(4)
---------------- ----------------- ---------------------
</TABLE>

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

(1) Unaudited.

(2) Commencement of operations.

(3) Assumes reinvestment of all dividends and distributions. Aggregate (not
annualized) total return is shown for any period shorter than one year.

(4) Annualized.

(5) Average net assets for the six months ended June 30, 1996 were $3,930,480.

(6) Does not reflect expense offsets.

(7) During the periods presented above, the Adviser waived a portion or all of
its fees and assumed a portion of the Portfolio's operating expenses.
Additionally, for the six months ended June 30, 1996, the Portfolio
benefited from an expense offset arrangement with its custodian bank. If
such waivers, assumptions and expense offsets had not been in effect, the
ratios of net operating expenses to average net assets would have been
1.48%, 1.14% and 2.03%, respectively, and the ratios of net investment
income to average net assets would have been 3.91%, 4.80% and 3.10%,
respectively.

<PAGE> 62

OCC ACCUMULATION TRUST
U.S. GOVERNMENT INCOME PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)

JUNE 30, 1996

<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- --------- ----------
<C> <S> <C>
U.S. TREASURY NOTES -- 39.6%
$ 95,000 5.75%, 8/15/03........................................................ $ 90,472
65,000 6.375%, 8/15/02....................................................... 64,482
425,000 6.50%, 8/15/97........................................................ 427,788
125,000 7.25%, 2/15/98........................................................ 127,208
150,000 7.25%, 5/15/04........................................................ 155,413
140,000 7.375%, 11/15/97...................................................... 142,493
----------
Total U.S. Treasury Notes (cost -- $1,009,961)...................... $1,007,856
----------
U.S. GOVERNMENT AGENCY NOTES -- 58.9%
$ 75,000 Federal Farm Credit Bank, 8.65%, 10/1/99.............................. $ 79,559
Federal Home Loan Bank,
60,000 6.94%, 3/14/97........................................................ 60,450
155,000 8.60%, 8/25/99........................................................ 164,131
Federal Home Loan Mortgage Corp.,
250,000 5.27%, 7/10/96........................................................ 249,671
175,000 6.22%, 3/24/03........................................................ 169,285
125,000 7.75%, 11/7/01........................................................ 130,645
Federal National Mortgage Assoc.,
60,000 5.375%, 6/10/98....................................................... 59,090
230,000 8.80%, 7/25/97........................................................ 237,834
55,000 9.20%, 6/10/97........................................................ 56,633
75,000 Student Loan Marketing Assoc., 7.00%, 3/3/98.......................... 75,996
Tennessee Valley Authority,
150,000 6.00%, 11/1/00........................................................ 146,671
65,000 8.375%, 10/1/99....................................................... 68,474
----------
Total U.S. Government Agency Notes (cost -- $1,501,437)............. $1,498,439
----------
Total Investments(A) (cost -- $2,511,398).................... 98.5% $2,506,295
Other Assets in Excess of Other Liabilities.................. 1.5 38,177
----- ----------
Total Net Assets............................................. 100.0% $2,544,472
===== ==========
</TABLE>

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

(A) Aggregate gross unrealized appreciation for securities in which there is an
excess of value over tax cost is $7,470, aggregate gross unrealized
depreciation for securities in which there is an excess of tax cost over
value is $12,573, and net unrealized depreciation for Federal income tax
purposes is $5,103. Federal income tax basis of portfolio securities is
substantially the same as for financial reporting purposes.

See accompanying notes to financial statements.

<PAGE> 63

OCC ACCUMULATION TRUST
U.S. GOVERNMENT INCOME PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED)

JUNE 30, 1996

<TABLE>
<S> <C>
ASSETS
Investments, at value (cost -- $2,511,398)...................................... $2,506,295
Cash............................................................................ 6,234
Interest receivable............................................................. 45,878
Receivable from fund shares sold................................................ 6,198
Receivable from Adviser......................................................... 111
Other assets.................................................................... 387
----------
Total Assets.................................................................. 2,565,103
----------
LIABILITIES
Dividends payable............................................................... 3,601
Payable for fund shares redeemed................................................ 1,442
Other payables and accrued expenses............................................. 15,588
----------
Total Liabilities............................................................. 20,631
----------
NET ASSETS
Par value ($.01 per share)...................................................... 2,466
Paid-in-surplus................................................................. 2,550,422
Accumulated net realized loss on investments.................................... (3,313)
Net unrealized depreciation on investments...................................... (5,103)
----------
Total Net Assets.............................................................. $2,544,472
==========
Fund shares outstanding......................................................... 246,621
----------
Net asset value per share....................................................... $ 10.32
==========
</TABLE>

See accompanying notes to financial statements.

<PAGE> 64

OCC ACCUMULATION TRUST
U.S. GOVERNMENT INCOME PORTFOLIO
STATEMENT OF OPERATIONS (UNAUDITED)

FOR THE SIX MONTHS ENDED JUNE 30, 1996

<TABLE>
<S> <C>
INVESTMENT INCOME
Interest........................................................................ $ 59,181
--------
OPERATING EXPENSES
Custodian fees (note 1G)........................................................ 8,329
Investment advisory fees (note 2)............................................... 5,742
Auditing, consulting and tax return preparation fees............................ 5,126
Transfer and dividend disbursing agent fees..................................... 4,519
Legal fees...................................................................... 1,256
Reports and notices to shareholders............................................. 216
Miscellaneous................................................................... 6,901
--------
Total operating expenses..................................................... 32,089
Less: Investment advisory fees waived and expenses assumed (note 2).......... (23,743)
Less: Expense offset arrangement (note 1G)................................... (184)
--------
Net operating expenses.................................................. 8,162
--------
Net investment income................................................... 51,019
--------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET
Net realized loss on investments............................................. (3,313)
Net change in unrealized appreciation (depreciation) on investments.......... (47,093)
--------
Net realized loss and change in unrealized appreciation (depreciation)
on investments........................................................ (50,406)
--------
Net increase in net assets resulting from operations.............................. $ 613
========
</TABLE>

See accompanying notes to financial statements.

<PAGE> 65

OCC ACCUMULATION TRUST
U.S. GOVERNMENT INCOME PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
SIX MONTHS ENDED JANUARY 3, 1995(2)
JUNE 30, 1996(1) TO DECEMBER 31, 1995
---------------- --------------------
<S> <C> <C>
OPERATIONS
Net investment income....................................... $ 51,019 $ 46,710
Net realized gain (loss) on investments..................... (3,313) 7,795
Net change in unrealized appreciation (depreciation) on
investments............................................... (47,093) 41,990
---------------- --------------------
Net increase in net assets resulting from operations... 613 96,495
---------------- --------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Net investment income....................................... (51,019) (46,710)
Net realized gains.......................................... -- (7,795)
---------------- --------------------
Total dividends and distributions to shareholders...... (51,019) (54,505)
---------------- --------------------
FUND SHARE TRANSACTIONS
Net proceeds from sales..................................... 1,233,993 1,442,074
Reinvestment of dividends and distributions................. 48,029 53,894
Cost of shares redeemed..................................... (129,602) (95,500)
---------------- --------------------
Net increase in net assets from fund share
transactions......................................... 1,152,420 1,400,468
---------------- --------------------
Total increase in net assets...................... 1,102,014 1,442,458
NET ASSETS
Beginning of period......................................... 1,442,458 0
---------------- --------------------
End of period............................................... $2,544,472 $1,442,458
============= ===============
SHARES ISSUED AND REDEEMED
Issued...................................................... 118,571 139,749
Issued in reinvestment of dividends and distributions....... 4,620 5,140
Redeemed.................................................... (12,369) (9,090)
---------------- --------------------
Net increase........................................... 110,822 135,799
============= ===============
</TABLE>

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

(1) Unaudited.

(2) Commencement of operations.

See accompanying notes to financial statements.

<PAGE> 66

OCC ACCUMULATION TRUST
U.S. GOVERNMENT INCOME PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

JUNE 30, 1996

(1) ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

OCC Accumulation Trust (formerly 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 (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

Investment debt securities (other than short-term obligations) are valued
each business day by an independent pricing service approved by the Board of
Trustees. Investment debt securities 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 sixty days or less are valued at amortized cost
or amortized value 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

Investment transactions are accounted for on the trade date. In determining
the gain or loss from the sale of investments, the cost of investments 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.

<PAGE> 67

OCC ACCUMULATION TRUST
U.S. GOVERNMENT INCOME PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

JUNE 30, 1996

(1) ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(D) DIVIDENDS AND DISTRIBUTIONS (CONTINUED)
in-surplus or tax return of capital. At June 30, 1996, the portfolio did not
have any permanent book-tax differences.

(E) ALLOCATION OF EXPENSES

(F) USE OF ESTIMATES

(G) CUSTODY OFFSETS

(2) INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES

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%.

(3) PURCHASES AND SALES OF SECURITIES

For the six months ended June 30, 1996, purchases and sales of investment
securities, other than short-term securities were $1,249,248 and $347,688,
respectively.

<PAGE> 68

OCC ACCUMULATION TRUST
U.S. GOVERNMENT INCOME PORTFOLIO
FINANCIAL HIGHLIGHTS

FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD:

<TABLE>
<CAPTION>
SIX MONTHS ENDED JANUARY 3, 1995(2)
JUNE 30, 1996(1) TO DECEMBER 31, 1995
---------------- --------------------
<S> <C> <C>
Net asset value, beginning of period..................... $ 10.62 $ 10.00
---------- ----------
Income from investment operations:
Net investment income.................................... 0.28 0.60
Net realized and unrealized gain (loss) on investments... (0.30) 0.68
---------- ----------
Total from investment operations....................... (0.02) 1.28
---------- ----------
Dividends and distributions to shareholders:
Dividends to shareholders from net investment income..... (0.28) (0.60)
Distributions to shareholders from net realized capital
gains.................................................. -- (0.06)
---------- ----------
Total dividends and distributions...................... (0.28) (0.66)
---------- ----------
Net asset value, end of period........................... $ 10.32 $ 10.62
========== ==========
Total return(3).......................................... (0.2%) 13.1%
========== ==========
Net assets, end of period................................ $2,544,472 $1,442,458
---------- ----------
Ratio of net operating expenses to average net
assets(7).............................................. 0.87%(4,5,6) 0.75%(4)
---------- ----------
Ratio of net investment income to average net
assets(7).............................................. 5.33%(4,5) 5.75%(4)
---------- ----------
Portfolio turnover....................................... 21% 65%
---------- ----------
</TABLE>

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

(1) Unaudited.

(2) Commencement of operations.

(3) Assumes reinvestment of all dividends and distributions. Aggregate (not
annualized) total return is shown for any period shorter than one year.

(4) Annualized.

(5) Average net assets for the six months ended June 30, 1996 were $1,924,613.

(6) Does not reflect expense offsets.

(7) During the periods presented above, the Adviser waived its fees and assumed
a portion of the Portfolio's operating expenses. Additionally, for the six
months ended June 30, 1996, the Portfolio benefited from an expense offset
arrangement with its custodian bank. If such waivers, assumptions and
expense offsets had not been in effect, the ratios of net operating expenses
to average net assets would have been 3.35% and 4.73%, respectively, and the
ratios of net investment income to average net assets would have been 2.85%
and 1.77%, respectively.

<PAGE> 69

OCC ACCUMULATION TRUST
GLOBAL EQUITY FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1996
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ------------- ----------
<C> <S> <C>
U.S. GOVERNMENT AGENCY NOTES -- 4.9%
395,000 US$ Federal Home Loan Mortgage Corp., 5.27%, 7/10/96
(amortized cost -- $394,480)................................... $ 394,480
----------
CONVERTIBLE CORPORATE NOTES -- 1.9%
BERMUDA -- 1.0%
BANKING
80,000 Mitsubishi Bank Ltd., 3.50%, 3/31/04............................. $ 84,450
----------
HONG KONG -- .6%
BANKING
40,000 Bangkok Bank Public Co., 3.25%, 3/3/04........................... 45,800
----------
JAPAN -- .3%
BANKING
2,000,000 JPY Sumitomo Bank International, .75%, 5/31/01....................... 19,750
----------
Total Convertible Corporate Notes (cost -- $144,264)........... $ 150,000
----------

<CAPTION>
SHARES
<C> <S> <C>
COMMON STOCKS -- 91.4%
AUSTRALIA -- .7%
PAPER PRODUCTS
8,500 WMC Ltd. ........................................................ $ 60,786
----------
AUSTRIA -- .3%
AIRPORTS
375 Flughafen Wein AG................................................ 25,766
----------
BERMUDA -- 1.5%
INSURANCE
1,900 ACE, Ltd. ....................................................... 89,300
400 EXEL Ltd. ....................................................... 28,200
----------
117,500
----------
BRAZIL -- .6%
PAPER PRODUCTS
5,000 Aracruz Celulose SA.............................................. 47,500
----------
CANADA -- .5%
ELECTRONICS
5,000 CAE, Inc. ....................................................... 41,383
----------
</TABLE>

<PAGE> 70

OCC ACCUMULATION TRUST
GLOBAL EQUITY FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1996

<TABLE>
<CAPTION>
SHARES VALUE
----------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
CZECHOSLOVAKIA -- .6%
TELECOMMUNICATIONS
375 SPT Telekom AS*.................................................. $ 45,797
----------
FINLAND -- 1.7%
DRUGS & MEDICAL PRODUCTS -- .4%
5,600 Oy Tamro AB...................................................... 33,613
----------
RETAIL -- .3%
400 Oy Stockmann AB.................................................. 20,641
----------
TELECOMMUNICATIONS -- 1.0%
2,200 Oy Nokia AB...................................................... 80,607
----------
Total Finnish Common Stocks.................................... 134,861
----------
FRANCE -- 3.2%
ELECTRONICS -- .4%
600 Schneider SA..................................................... 31,495
----------
ENERGY -- .8%
900 Total SA......................................................... 66,805
----------
INSURANCE -- .9%
1,100 Assurances Generales de France................................... 29,812
1,000 Scor SA.......................................................... 38,980
----------
68,792
----------
MANUFACTURING -- .4%
600 Michelin (CGDE).................................................. 29,396
----------
PAPER PRODUCTS -- .2%
400 Confinec SA*..................................................... 19,100
----------
POWER/UTILITIES -- .5%
375 Compagnie Generale des Eaux...................................... 41,921
----------
Total French Common Stocks..................................... 257,509
----------
GERMANY -- 5.1%
CHEMICALS -- .8%
550 SGL Carbon AG.................................................... 64,387
----------
COMPUTER SERVICES -- .9%
500 SAP AG........................................................... 74,153
----------
CONSUMER PRODUCTS -- 1.7%
800 Adidas AG........................................................ 67,294
2,000 Puma AG*......................................................... 71,884
----------
139,178
----------
</TABLE>

<PAGE> 71

OCC ACCUMULATION TRUST
GLOBAL EQUITY FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1996

<TABLE>
<CAPTION>
SHARES VALUE
----------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
GERMANY (CONTINUED)
DRUGS & MEDICAL PRODUCTS -- .8%
75 Gehe AG.......................................................... $ 50,411
200 Shering AG....................................................... 14,561
----------
64,972
----------
INSURANCE -- .9%
90 Koelnische Rueckversicherungs AG................................. 70,733
----------
Total German Common Stocks..................................... 413,423
----------
HONG KONG -- 1.3%
CONSUMER PRODUCTS -- .7%
199,500 Yue Yuen Industrial Holdings..................................... 56,700
----------
WHOLESALE -- .6%
80,000 China Hong Kong Photo Products Holdings Ltd. .................... 45,732
----------
Total Hong Kong Common Stocks.................................. 102,432
----------
HUNGARY -- 1.3%
CONGLOMERATES -- .7%
6,650 Benpres Holdings Corp.*.......................................... 54,031
----------
DRUGS & MEDICAL PRODUCTS -- .6%
1,050 Gedeon Richter Ltd., GDR......................................... 52,762
----------
Total Hungarian Common Stocks.................................. 106,793
----------
ITALY -- 1.8%
CONSUMER PRODUCTS -- .6%
3,100 Bulgari S.p.A. .................................................. 49,600
----------
TELECOMMUNICATIONS -- .7%
28,000 Telecom Italia Mobile S.p.A.*.................................... 38,217
11,500 Telecom Italia S.p.A. ........................................... 19,864
----------
58,081
----------
TEXTILES/APPAREL -- .5%
6,000 Marzotto & Figli S.p.A. ......................................... 37,577
----------
Total Italian Common Stocks.................................... 145,258
----------
JAPAN -- 13.2%
AUTOMOTIVE -- 1.2%
7,000 Mitsubishi Motors Corp. ......................................... 61,446
2,000 Murakami Corp. .................................................. 31,637
----------
93,083
----------
</TABLE>

<PAGE> 72

OCC ACCUMULATION TRUST
GLOBAL EQUITY FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1996

<TABLE>
<CAPTION>
SHARES VALUE
----------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
JAPAN (CONTINUED)
BANKING -- .9%
11,000 Daiwa Bank Ltd. ................................................. $ 76,240
----------
BUILDING & CONSTRUCTION -- .9%
3,000 Aoki Marine Co. Ltd. ............................................ 20,573
3,000 Kitano Construction Corp. ....................................... 20,436
3,000 Maeda Corp. ..................................................... 29,900
----------
70,909
----------
CHEMICALS -- .0%
50 Shin-Etsu Chemical Co. .......................................... 960
----------
CONSUMER PRODUCTS -- .8%
3,000 Canon, Inc. ..................................................... 62,543
----------
DRUGS & MEDICAL PRODUCTS -- 1.8%
2,000 Sankyo Co., Ltd. ................................................ 51,936
3,000 Takeda Chemical Industries....................................... 53,216
2,000 Yamanouchi Pharmaceutical........................................ 43,524
----------
148,676
----------
ELECTRICAL ENGINEERING -- .2%
1,100 Kinden Corp. .................................................... 17,300
----------
ELECTRONICS -- 3.1%
3,000 Hitachi Koki..................................................... 29,626
600 Kyocera Corp. ................................................... 83,550
6,000 Mitsubishi Electric Corp. ....................................... 41,915
2,000 Nippon Electric Glass Co. Ltd. .................................. 34,197
3,000 Omron Corp. ..................................................... 63,914
----------
253,202
----------
ENTERTAINMENT -- .3%
1,000 Heiwa Corp. ..................................................... 23,134
----------
INSURANCE -- .6%
8,000 Fuji Fire & Marine Insurance..................................... 44,621
----------
METALS/MINING -- .6%
15,000 Sumitomo Metal Industries........................................ 46,084
----------
MISCELLANEOUS FINANCIAL SERVICES -- .5%
200 Shohkoh Fund..................................................... 42,061
----------
POWER/UTILITIES -- .8%
3,000 Kansai Electric Power............................................ 68,852
----------
RETAIL -- 1.0%
9,000 Maruetsu......................................................... 81,306
----------
</TABLE>

<PAGE> 73

OCC ACCUMULATION TRUST
GLOBAL EQUITY FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1996

<TABLE>
<CAPTION>
SHARES VALUE
----------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
JAPAN (CONTINUED)
SECURITY/INVESTIGATION -- .5%
3,000 Toyo Tec Co. Ltd. ............................................... $ 37,306
----------
Total Japanese Common Stocks................................... 1,066,277
----------
LIECHTENSTEIN -- .4%
BANKING -- .4%
65 Liechtenstein Global Trust AG.................................... 31,715
----------
MEXICO -- .7%
BUILDING & CONSTRUCTION
12,000 Corporacion GEO, SA de CV*....................................... 53,474
----------
NETHERLANDS -- 1.4%
BUILDING & CONSTRUCTION -- .2%
400 Kondor Wessells Groep NV......................................... 13,744
----------
IMPORTING/EXPORTING -- .4%
453 Hagemeyer NV..................................................... 32,332
----------
MISCELLANEOUS FINANCIAL SERVICES -- .3%
762 ING Groep NV..................................................... 22,742
----------
PRINTING/PUBLISHING -- .5%
2,700 Ver Ned Uitgevers................................................ 41,953
----------
Total Netherlands Common Stocks................................ 110,771
----------
NEW ZEALAND -- .5%
FOOD SERVICES
114,392 AFFCO Holdings Ltd. ............................................. 43,286
----------
NORWAY -- .5%
BANKING
7,700 Fokus Bank AS.................................................... 42,006
----------
SINGAPORE -- .5%
PRINTING/PUBLISHING
2,000 Singapore Press Holdings Ltd. ................................... 39,263
----------
</TABLE>

<PAGE> 74

OCC ACCUMULATION TRUST
GLOBAL EQUITY FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1996

<TABLE>
<CAPTION>
SHARES VALUE
----------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
SOUTH KOREA -- .3%
ELECTRONICS -- .1%
3 Samsung Electronics Ltd. GDR*.................................... $ 135
9 Samsung Electronics Ltd. GDR -- SAMNG*........................... 461
90 Samsung Electronics Ltd. GDR -- SAMEG*........................... 1,935
----------
2,531
----------
METALS/MINING -- .2%
800 Pohang Iron & Steel Co. Ltd. ADR................................. 19,500
----------
Total South Korean Common Stocks............................... 22,031
----------
SPAIN -- 2.2%
BANKING -- .7%
1,300 Corporacion Bancaria de Espana SA................................ 56,771
----------
ENERGY -- .6%
1,500 Repsol SA........................................................ 52,205
----------
MANUFACTURING -- .6%
900 Vidrala SA....................................................... 45,701
----------
POWER/UTILITIES -- .3%
3,000 Compania Sevillana de Electricidad............................... 27,655
----------
Total Spanish Common Stocks.................................... 182,332
----------
SWEDEN -- 3.1%
BANKING -- .3%
1,450 Nordbanken AB*................................................... 28,036
----------
DRUGS & MEDICAL PRODUCTS -- .4%
700 ASTRA AB......................................................... 30,981
----------
MACHINERY/ENGINEERING -- 1.8%
450 ABB AB........................................................... 47,786
3,550 Atlas Copco AB................................................... 66,226
1,600 Kalmar Industries AB............................................. 33,836
----------
147,848
----------
PAPER PRODUCTS -- .6%
2,100 AssiDoman AB..................................................... 49,010
----------
Total Swedish Common Stocks.................................... 255,875
----------
SWITZERLAND -- 2.7%
BUILDING & CONSTRUCTION -- .5%
55 Holderbank Financiere Glaris AG.................................. 43,993
----------
</TABLE>

<PAGE> 75

OCC ACCUMULATION TRUST
GLOBAL EQUITY FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1996

<TABLE>
<CAPTION>
SHARES VALUE
----------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
SWITZERLAND (CONTINUED)
DRUGS & MEDICAL PRODUCTS -- 1.9%
60 Ares-Serono Group................................................ $ 52,792
85 Sandoz AG........................................................ 97,292
----------
150,084
----------
MANUFACTURING -- .3%
10 Sig Schweizerische Industrie -- Gesellschaft Holding AG.......... 23,676
----------
Total Swiss Common Stocks...................................... 217,753
----------
THAILAND -- 1.0%
CONTAINERS -- .3%
4,800 Thai Glass Industries Ltd. ...................................... 23,258
----------
WHOLESALE -- .7%
11,000 Siam Makro Public Co. Ltd. ...................................... 55,033
----------
Total Thailand Common Stocks................................... 78,291
----------
UNITED KINGDOM -- 3.7%
AUTOMOTIVE -- .7%
16,000 Lucas Industries PLC............................................. 56,282
----------
COMPUTER SERVICES -- .7%
19,500 Amstrad PLC...................................................... 58,449
----------
MANUFACTURING -- .4%
18,000 Bridon PLC....................................................... 31,309
----------
METALS/MINING -- .4%
6,000 Antofagasta Holdings PLC......................................... 29,818
----------
RETAIL -- 1.5%
10,259 Argyll Group PLC................................................. 55,286
8,500 Dixon Group PLC.................................................. 69,568
----------
124,854
----------
Total United Kingdom Common Stocks............................. 300,712
----------
UNITED STATES -- 42.6%
AEROSPACE/DEFENSE -- 8.2%
4,400 Lockheed Martin Corp. ........................................... 369,600
6,000 McDonnell Douglas Corp. ......................................... 291,000
----------
660,600
----------
</TABLE>

<PAGE> 76

OCC ACCUMULATION TRUST
GLOBAL EQUITY FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1996

<TABLE>
<CAPTION>
SHARES VALUE
----------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
UNITED STATES (CONTINUED)
BANKING -- 7.9%
4,000 Citicorp......................................................... $ 330,500
1,300 Wells Fargo & Co. ............................................... 310,538
----------
641,038
----------
CHEMICALS -- 4.6%
4,000 du Pont (E.I.) de Nemours & Co. ................................. 316,500
400 Hercules, Inc. .................................................. 22,100
1,000 Monsanto Co. .................................................... 32,500
----------
371,100
----------
CONSUMER PRODUCTS -- 3.5%
10,000 Mattel, Inc. .................................................... 286,250
----------
DRUGS & MEDICAL PRODUCTS -- 2.6%
2,600 Becton, Dickinson & Co. ......................................... 208,650
----------
ENERGY -- 2.5%
4,000 Tenneco, Inc. ................................................... 204,500
----------
ENTERTAINMENT -- .7%
2,000 Harrah's Entertainment, Inc.*.................................... 56,500
----------
INSURANCE -- .1%
200 ITT Hartford Group, Inc. ........................................ 10,650
----------
MANUFACTURING -- .0%
100 ITT Industries, Inc. ............................................ 2,513
----------
METALS/MINING -- 1.2%
3,000 Freeport McMoRan Copper & Gold (Class B)......................... 95,625
----------
MISCELLANEOUS FINANCIAL SERVICES -- 3.5%
500 American Express Co. ............................................ 22,313
3,000 Federal Home Loan Mortgage Corp. ................................ 256,500
----------
278,813
----------
PAPER PRODUCTS -- 1.0%
1,100 Champion International, Inc. .................................... 45,925
400 Kimberly-Clark Corp. ............................................ 30,900
----------
76,825
----------
RAILROADS -- 3.5%
4,000 Union Pacific Corp. ............................................. 279,500
----------
TECHNOLOGY -- 1.7%
1,000 Intel Corp. ..................................................... 73,438
4,000 National Semiconductor Corp.*.................................... 62,000
----------
135,438
----------
</TABLE>

<PAGE> 77

OCC ACCUMULATION TRUST
GLOBAL EQUITY FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1996

<TABLE>
<CAPTION>
SHARES VALUE
----------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
UNITED STATES (CONTINUED)
TELECOMMUNICATIONS -- .7%
1,300 Loral Space & Communications*.................................... $ 17,713
1,000 Sprint Corp...................................................... 42,000
----------
59,713
----------
TRANSPORTATION -- .9%
800 AMR Corp.*....................................................... 72,800
----------
Total United States Common Stocks.............................. 3,440,515
----------
Total Common Stocks (cost -- $6,910,589)....................... $7,383,309
----------
SCRIPS
NETHERLANDS -- .0%
MISCELLANEOUS FINANCIAL SERVICES
1 ING Groep NV* (cost -- $0)....................................... $ 15
----------
Total Investments(A) (cost -- $7,449,333)............... 98.2% 7,927,804
Other Assets in Excess of Other Liabilities............. 1.8 146,243
----- ----------
Total Net Assets........................................ 100.0% $8,074,047
===== ==========
</TABLE>

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

* Non-income producing security.

(A) Aggregate gross unrealized appreciation for securities in which there is an
excess of value over tax cost is $574,784, aggregate gross unrealized
depreciation for securities in which there is an excess of tax cost over
value is $96,313, and net unrealized appreciation for Federal income tax
purposes is $478,471. Federal income tax basis of portfolio securities is
substantially the same as for financial reporting purposes.

See accompanying notes to financial statements.

<PAGE> 78

OCC ACCUMULATION TRUST
GLOBAL EQUITY PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED)

JUNE 30, 1996

<TABLE>
<S> <C>
ASSETS
Investments, at value (cost -- $7,449,333)...................................... $7,927,804
Cash............................................................................ 11,405
Foreign currencies (cost -- $57,897)............................................ 60,253
Receivable from investments sold................................................ 167,797
Receivable from fund shares sold................................................ 55,048
Dividends receivable............................................................ 9,715
Withholding taxes reclaimable................................................... 2,456
Interest receivable............................................................. 1,136
Other assets.................................................................... 621
----------
Total Assets.................................................................. 8,236,235
----------
LIABILITIES
Payable for investments purchased............................................... 146,694
Withholding taxes payable....................................................... 1,052
Investment advisory fees payable................................................ 411
Other payables and accrued expenses............................................. 14,031
----------
Total Liabilities............................................................. 162,188
----------
NET ASSETS
Par value ($.01 per share)...................................................... 6,460
Paid-in-surplus................................................................. 7,516,142
Accumulated undistributed net investment income................................. 25,445
Accumulated undistributed net realized gain on investments...................... 53,960
Accumulated undistributed net realized loss on foreign currency transactions.... (5,941)
Net unrealized appreciation on investments and translation of other assets and
liabilities denominated in foreign currencies................................. 477,981
----------
Total Net Assets.............................................................. $8,074,047
=========
Fund shares outstanding......................................................... 645,959
----------
Net asset value per share....................................................... $ 12.50
=========
</TABLE>

See accompanying notes to financial statements.

<PAGE> 79

OCC ACCUMULATION TRUST
GLOBAL EQUITY PORTFOLIO
STATEMENT OF OPERATIONS (UNAUDITED)

JUNE 30, 1996

<TABLE>
<S> <C>
INVESTMENT INCOME
Dividends (net of foreign withholding taxes of $4,146).......................... $ 48,190
Interest........................................................................ 14,507
--------
Total investment income...................................................... 62,697
--------
OPERATING EXPENSES
Custodian fees (note 1G)........................................................ 27,098
Investment advisory fees (note 2A).............................................. 21,786
Auditing, consulting and tax return preparation fees............................ 6,162
Transfer and dividend disbursing agent fees..................................... 4,556
Legal fees...................................................................... 1,386
Reports and notices to shareholders............................................. 296
Miscellaneous................................................................... 2,641
--------
Total operating expenses..................................................... 63,925
Less: Investment advisory fees waived (note 2A).............................. (13,924)
Less: Expense offset arrangement (note 1G)................................... (14,816)
--------
Net operating expenses.................................................. 35,185
--------
Net investment income................................................... 27,512
--------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS -- NET
Net realized gain on investments............................................. 47,024
Net realized loss on foreign currency transactions........................... (76)
Net change in unrealized appreciation (depreciation) on investments and
translation of other assets and liabilities denominated in foreign
currencies.................................................................. 335,586
--------
Net realized gain (loss) and change in unrealized appreciation
(depreciation) on investments and translation of other assets and
liabilities denominated in foreign currencies........................... 382,534
--------
Net increase in net assets resulting from operations.............................. $410,046
========
</TABLE>

See accompanying notes to financial statements.

<PAGE> 80

OCC ACCUMULATION TRUST
GLOBAL EQUITY PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
SIX MONTHS ENDED MARCH 1, 1995(2)
JUNE 30, 1996(1) TO DECEMBER 31, 1995
---------------- --------------------
<S> <C> <C>
OPERATIONS
Net investment income....................................... $ 27,512 $ 12,301
Net realized gain on investments............................ 47,024 57,143
Net realized loss on foreign currency transactions.......... (76) (2,877)
Net change in unrealized appreciation (depreciation) on
investments and translation of other assets and
liabilities denominated in foreign currencies............. 335,586 142,395
---------------- --------------------
Net increase in net assets resulting from operations... 410,046 208,962
---------------- --------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Net investment income....................................... (2,245) (8,174)
Net realized gains on investments........................... -- (57,143)
---------------- --------------------
Total dividends and distributions to shareholders...... (2,245) (65,317)
---------------- --------------------
FUND SHARE TRANSACTIONS
Net proceeds from sales..................................... 7,398,266 2,683,554
Reinvestment of dividends and distributions................. 2,245 65,317
Cost of shares redeemed..................................... (2,625,586) (1,195)
---------------- --------------------
Net increase in net assets from fund share
transactions......................................... 4,774,925 2,747,676
---------------- --------------------
Total increase in net assets...................... 5,182,726 2,891,321
NET ASSETS
Beginning of period......................................... 2,891,321 0
---------------- --------------------
End of period (including undistributed net investment income
of $25,445 and 4,127, respectively)....................... $8,074,047 $2,891,321
============ ===============
SHARES ISSUED AND REDEEMED
Issued...................................................... 614,933 243,412
Issued in reinvestment of dividends and distributions....... 189 5,636
Redeemed.................................................... (218,109) (102)
---------------- --------------------
Net increase........................................... 397,013 248,946
============ ===============
</TABLE>

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

(1) Unaudited.

(2) Commencement of operations.

See accompanying notes to financial statements.

<PAGE> 81

OCC ACCUMULATION TRUST
GLOBAL EQUITY PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

JUNE 30, 1996

(1) ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

OCC Accumulation Trust (formerly 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, (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
sixty days or less are valued at amortized cost or amortized value, 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

Investment 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> 82

OCC ACCUMULATION TRUST
GLOBAL EQUITY PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

JUNE 30, 1996

(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.

(F) 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.

(G) CUSTODY OFFSETS

The portfolio benefits from an expense offset arrangement with its
custodian bank where uninvested cash balances earn credits that reduce monthly
fees. Had these cash balances been invested in income producing securities, they
would have generated income for the Portfolio.

(2) INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES

The Adviser has agreed to waive that portion of the advisory fee and to
assume any necessary expenses to limit operating expenses of the Portfolio to
1.25% (net of expense offsets) of average daily net assets on an annual basis.

(B) Total brokerage commissions paid by the Portfolio for the six months ended
June 30, 1996 amounted to $18,645, of which Oppenheimer & Co., Inc., an
affiliate of the Adviser, received $1,749.

(3) PURCHASES AND SALES OF SECURITIES

For the six months ended June 30, 1996 purchases and sales of investment
securities, other than short-term securities were $6,485,553 and $1,294,720,
respectively.

(4) SPECIAL SHAREHOLDER MEETING

The Trust held a special meeting of its shareholders on April 15, 1996 to
vote on an amendment to the Investment Advisory Agreement between OpCap Advisors
and the Trust, resulting in an increase in the advisory fees for the Portfolio.
The following provides results of the matter voted on at the meeting:

<TABLE>
<CAPTION>
FOR AGAINST ABSTAIN
- ------- ------- -------
<S> <C> <C>
231,882 21,169 2,587
</TABLE>

<PAGE> 83

OCC ACCUMULATION TRUST
GLOBAL EQUITY PORTFOLIO
FINANCIAL HIGHLIGHTS

FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD:

<TABLE>
<CAPTION>
SIX MONTHS ENDED MARCH 1, 1995(2)
JUNE 30, 1996(1) TO DECEMBER 31, 1995
---------------- --------------------
<S> <C> <C>
Net asset value, beginning of period...................... $ 11.61 $ 10.00
---------- ----------
Income from investment operations:
Net investment income..................................... 0.06 0.05
Net realized gain (loss) and unrealized appreciation
(depreciation) on investments and translation of other
assets and liabilities denominated in foreign
currencies.............................................. 0.84 1.83
---------- ----------
Total from investment operations........................ 0.90 1.88
---------- ----------
Dividends and distributions to shareholders:
Dividends to shareholders from net investment income...... (0.01) (0.03)
Distributions to shareholders from net realized capital
gains................................................... -- (0.24)
---------- ----------
Total dividends and distributions....................... (0.01) (0.27)
---------- ----------
Net asset value, end of period............................ $ 12.50 $ 11.61
========== ==========
Total return(3)........................................... 7.7% 18.9%
========== ==========
Net assets, end of period................................. $8,074,047 $2,891,321
---------- ----------
Ratio of net operating expenses to average net
assets(7)............................................... 1.77%(4,5,6) 1.25%(4)
---------- ----------
Ratio of net investment income to average net assets(7)... 0.98%(4,5) 1.02%(4)
---------- ----------
Portfolio turnover........................................ 29% 67%
---------- ----------
Average commission rate................................... $ 0.02 --
---------- ----------
</TABLE>

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

(1) Unaudited.

(2) Commencement of operations.

(3) Assumes reinvestment of all dividends and distributions. Aggregate (not
annualized) total return is shown for any period shorter than one year.

(4) Annualized.

(5) Average net assets for the six months ended June 30, 1996 were $5,670,484.

(6) Does not reflect expense offsets.

(7) During the periods presented above, the Adviser waived a portion or all of
its fees and assumed a portion of the Portfolio's operating expenses.
Additionally, for the six months ended June 30, 1996, the Portfolio
benefited from an expense offset arrangement with its custodian bank. If
such waivers, assumptions and expense offsets had not been in effect, the
ratios of net operating expenses to average net assets would have been 2.27%
and 3.94%, respectively, and the ratios of net investment loss to average
net assets would have been (.04%) and (1.67%), respectively.