OCC ACCUMULATION TRUST, N-30D, 1997-08-27

OCC ACCUMULATION TRUST
N-30D, 1997-08-27

Previous: OCC ACCUMULATION TRUST, NSAR-A, 1997-08-27

Next: MERRILL LYNCH ASSET INCOME FUND INC, NSAR-A/A, 1997-08-27

<PAGE> 1

OCC ACCUMULATION TRUST

MANAGED BY

LOGO

We are pleased to report on the investment activities and results of the
portfolios in the OCC Accumulation Trust for the first half of 1997, a favorable
period for investors. Stock prices rose sharply during the half while bonds
delivered moderate returns.

With its continued sharp advance in the 1997 first half, the stock market
has been exceptionally strong for the past two-and-a-half years. As measured by
the total return of the Standard & Poor's 500 Index, the U.S. stock market has
risen 104% in the 30 months from year end 1994 through the end of June 1997,
matching its steepest ascent in history -- a 104% gain achieved in a 30-month
span of 1954-56. This recent performance has been driven by a sustained economic
environment of moderate growth, low inflation and low interest rates.

Throughout this period, we have remained disciplined in our investment
approach, and have delivered favorable returns with what we believe to be
below-market risk. All the equity portfolios in the OCC Accumulation Trust
ranked in the top half of their respective mutual fund categories for the 1997
first half, despite the inherently conservative nature of our investment
philosophy, and each has a very strong performance record over longer periods.

Simply stated, our investment philosophy is to buy good companies at
reasonable price. By doing so, we seek to preserve capital, manage risk and
generate excellent returns. Although our philosophy is relatively simple,
implementing that philosophy is complex and requires hard work and intensive
in-depth research to find companies which meet our criteria.

In today's world, when so many investors are seeking instant gratification,
we are sometimes able to acquire quality companies inexpensively when they have
a temporary misstep such as a quarterly earnings disappointment. We also try to
capitalize on changes in corporate direction and strategy which increase a
company's intrinsic value. Often, the market is slow to respond to positive
changes, creating opportunity for the astute value investor. We believe our
focus on value and our long-term perspective are a tremendous advantage in a
stock market which is often driven by transitory considerations.

The portfolios in the OCC Accumulation Trust are intended for the long-term
investor seeking to preserve capital and make it grow. Looking ahead, we remain
dedicated to preserving capital in all market conditions by being disciplined in
our value philosophy and not overpaying for securities, whether stocks or bonds.
<PAGE> 2

EQUITY PORTFOLIO

The Equity Portfolio owns a diverse group of large-capitalization and
mid-capitalization stocks. The Portfolio continued its excellent long-term
record of providing consistent returns through a variety of market conditions.
The Portfolio's total return in the first half was 13.7%, compared with a total
return of 20.6% with dividends included for the Standard & Poor's 500 Index (S&P
500), an unmanaged index of 500 of the largest corporations weighted by market
capitalization. The Portfolio's performance exceeded the 9.7% average total
return for the funds in Lipper's Variable Insurance Products Performance Service
Report capital appreciation category. The Portfolio ranked 14th among the 42
funds in this Lipper universe for the half.

One of the extraordinary aspects of the six-month period was that every
fund in the Lipper capital appreciation universe trailed the return of the S&P
500. This reflects the fact that the strong gains of the S&P 500 were driven
primarily by a limited number of very large-capitalization stocks. Broader
market indexes, which give less weight to the largest companies, generally
showed much smaller gains than the S&P 500 in the period. We believe our
first-half performance was reasonable both in terms of comparable funds and
given the risk-averse nature of our investment philosophy. We do not necessarily
expect to beat the S&P 500 when the market rises sharply over relatively short
periods. We are more concerned about delivering strong long-term results and
avoiding large losses when the market declines.

For the 12 months ended June 30, 1997, the Portfolio provided a total
return of 26.6%, surpassing the 15.1% average return for the funds in the Lipper
capital appreciation category. The Portfolio's 12-month performance was eighth
among the 42 funds in this Lipper universe. The return on the S&P 500 was 34.7%
in the 12 months.

The Portfolio has generated favorable returns over time, with what we
believe to be below-market risk. For the five years ended June 30, 1997, the
Portfolio provided an average annual total return of 19.9%*, compared with the
19.8% average annual return of the S&P 500. This performance was eighth among
the 19 funds in the Lipper capital appreciation category. Since its inception on
August 1, 1988, the Portfolio has generated an average annual total return of
17.2%*, compared with 17.6% 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 Fund invests in companies with what we consider to have superior
business characteristics, and which are trading in the market at prices well
below what we consider to be their inherent worth. Many of the companies owned
by the Portfolio are in seemingly mundane businesses, yet their leadership
positions permit them to earn high and improving returns on capital.
Caterpillar, Inc. (earth-moving equipment and diesel engines) is a low-cost,
highest-quality producer worldwide, and its service network represents a
formidable barrier to entry by competitors. LucasVarity PLC (auto components and
small diesel engines) has strong worldwide market positions and significant
cost-cutting and marketing opportunities as a result of the recent combination
of two predecessor companies. In both of these companies, as well as in other
companies owned by the Portfolio, management has focused on maximizing cash flow
returns on capital and using that cash flow to create wealth for shareholders,
such as by investing in high-return business opportunities or repurchasing
shares.

Even when we identify a business that meets our criteria, including high,
sustainable returns on capital, we are very conscious about not paying too much
for the company's stock. Buying stocks at reasonable valuations is very
important to us, since the price we pay should be low enough to offer both
significant opportunity for investment profit and meaningful protection against
a severe price decline. We believe our focus on value and our long-term
perspective are a tremendous advantage in a stock market which is often driven
by transitory considerations.

- ---------------
* 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

In the 1997 first half, we established a new position in EG&G, Inc. and
increased the Portfolio's holdings of ACE, Ltd., Armstrong World Industries,
Inc., Canadian Pacific Ltd., General Re Corp. and Lockheed Martin Corp. We
eliminated the Portfolio's investments in Columbia/HCA Healthcare Corp., CSX
Corp., Electronic Arts, Inc., Shaw Industries and TCI Satellite Entertainment,
Inc. and reduced its positions in American International Group, Inc. and Everest
Reinsurance Holdings, Inc.

Net assets were allocated 80% to common stocks and 20% to cash and cash
equivalents at June 30, 1997. The Portfolio's above-average cash position is a
buffer against market volatility and, more importantly, provides a resource to
purchase quality stocks opportunistically as they become available at attractive
prices.

The Portfolio's five largest equity positions at June 30, 1997 were EXEL
Ltd., a strongly capitalized specialty insurance company based in Bermuda,
representing 5.1% of the Portfolio's net assets; ACE, Ltd., a Bermuda-based
provider of excess liability insurance, 4.9% of net assets; Caterpillar, Inc.,
which manufactures earth-moving equipment and diesel engines, 3.8% of net
assets; General Re Corp., a leading insurance company, 3.6% of net assets; and
Lockheed Martin Corp., a major aerospace and defense contractor, 3.3% of net
assets.

Major industry positions were in the insurance sector, 23.2% of the
Portfolio's net assets; banking, 6.4% of net assets; aerospace/defense, 5.3% of
net assets; miscellaneous financial services, 5.3% of net assets; and
manufacturing, 4.1% of net assets.
<PAGE> 4

SMALL CAP PORTFOLIO

The Small Cap Portfolio delivered excellent returns in both the six and 12
months ended June 30, 1997, significantly exceeding the Russell 2000 Index with
dividends included (Russell 2000), a widely followed benchmark which includes
smaller capitalization stocks. We achieved these results by being disciplined in
our approach of buying reasonably valued companies based on their business
fundamentals.

The Portfolio's total return in the first half of 1997 was 14.6%, outpacing
both the 10.2% return of the Russell 2000 and the 8.1% average total return for
the small company growth funds in Lipper's Variable Insurance Products
Performance Analysis Service Report. The Portfolio ranked sixth among the 53
funds in this Lipper universe.

For the 12 months ended June 30, 1997, the Portfolio's total return of
25.5% surpassed the 16.3% return of the Russell 2000 and the 14.2% average
return for the funds in the Lipper small company growth funds category. The
Portfolio's 12-month results ranked sixth among the 48 funds in this Lipper
universe.

For the five years ended June 30, 1997, the Portfolio provided an average
annual total return of 16.0%*, compared with 17.9% for the Russell 2000. The
Portfolio's five-year performance was sixth among the seven funds in the Lipper
small company growth funds category. From its inception on August 1, 1988
through June 30, 1997, the Portfolio generated an average annual total return of
15.6%*, exceeding the 13.5% average annual total return of the Russell 2000.
Returns for the Portfolio take into account expenses incurred by the Portfolio,
but not separate account charges imposed by the insurance company.

The Portfolio invests in undervalued smaller companies with strong
competitive positions, high returns on capital and shareholder-oriented
managements. Although small-cap stocks as a class have underperformed large-cap
stocks for the past three years, we have achieved favorable returns, with what
we believe to be below-market risk, by being highly selective in our
investments.

Rather than purchasing start-up companies or highly volatile speculative
issues, we concentrate on companies with proven business records, solid
financials and good growth prospects. Magellan Health Services, Inc., the
Portfolio's largest holding, exemplifies the qualities we look for in an
investment, including high returns on invested capital, a leading competitive
position to help protect those returns, significant free cash flow which is
being used to create shareholder value and a management team oriented toward
shareholder interests. Magellan is the largest behavioral health care company in
the U.S. The company recently sold its brick-and-mortar hospital business,
realizing about $400 million of cash, which it is using to make acquisitions
that complement its managed-care business. Magellan is now focused solely on
providing managed-care mental health programs for corporations and government
agencies. It is the leader in this field, which offers excellent prospects for
revenue and earnings growth. At a recent price of about $30 a share, or about 15
times anticipated fiscal 1998 earnings, and with its strong cash flow and
favorable growth characteristics, we consider the stock to be an attractive
value.

During the 1997 first half, we established new positions in the common
stocks of Ametek, Inc., Durco International, Inc., JLG Industries, Inc.,
Jostens, Inc., KCS Energy, Inc. and A. Schulman, Inc. Increased positions
included E.W. Blanch Holdings, Inc., Magellan Health Services, Inc., St. Mary
Land & Exploration Co., Wang Laboratories, Inc. and Westpoint Stevens, Inc.
(Class A).

We eliminated the Portfolio's holdings of ACE, Ltd., Alltrista Corp., Arrow
Electronics, Inc., Exabyte Corp. and Jason, Inc. Reductions included Horace Mann
Educators Corp., Katz Media Group, Inc., SpaceLabs Medical, Inc. and United
Dominion Industries, Ltd.

At June 30, 1997, the Portfolio's net assets were allocated 85% to common
stocks and securities convertible into common stocks and 15% to cash and cash
equivalents. The five largest equity positions at the

- ---------------
* 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

end of June were Magellan Health Services, Inc., the largest provider of
managed-care behavioral health services in the U.S., representing 3.4% of the
Portfolio's net assets; Wang Laboratories, Inc., a systems integration and
computer maintenance firm, 2.8% of net assets; St. Mary Land & Exploration Co.,
an oil and gas exploration and production company, 2.7% of net assets; E.W.
Blanch Holdings, Inc., an insurance broker, 2.6% of net assets; and A. Schulman,
Inc., which produces plastics and resins, 2.4% of net assets.

Major industry positions were in the insurance sector, representing 12.8%
of the Portfolio's net assets; manufacturing, 9.0% of net assets; printing and
publishing, 6.8% of net assets; electronics, 5.8% of net assets; and energy,
5.5% of net assets.
<PAGE> 6

MANAGED PORTFOLIO

The Managed Portfolio invests in stocks, bonds and cash equivalents, with a
bias toward stocks, which have outperformed other classes of investments for
nearly every five-year period since the Depression. The Portfolio has
consistently ranked as one of the top-performing funds in Lipper's Variable
Insurance Products Performance Analysis Service Report flexible portfolio funds
category.

In the 1997 first half, the Portfolio delivered a total return of 14.0%,
exceeding the average total return of 10.4% for the funds in the Lipper flexible
portfolio universe, although below the total return of 20.6% with dividends
included for the Standard & Poor's 500 Index (S&P 500), an unmanaged index of
500 of the largest corporations weighted by market capitalization. As these
performance numbers indicate, most fund managers have trailed the S&P 500 in
recent months. During this period, the strong gains of the S&P 500 have been
driven primarily by a limited number of very large-capitalization stocks.
Broader market indexes, which give less weight to the largest companies, have
generally shown much smaller gains than the S&P 500.

We believe our performance in the 1997 first half continued to be favorable
given the nature of the fund and the risk-averse character of our investment
philosophy. The Portfolio's first-half performance ranked seventh among the 84
funds in the Lipper flexible portfolio category.

With a total return of 28.5% for the 12 months ended June 30, 1997, the
Portfolio exceeded the 19.4% average return of the funds in the Lipper flexible
portfolio category and ranked second among the 78 funds for the period. The
return on the S&P 500 was 34.7% in the 12 months.

For the five years ended June 30, 1997, the Portfolio delivered an average
annual return of 21.0%*, compared with 19.8% for the S&P 500. The Portfolio's
five-year performance was second among the 50 funds in the Lipper flexible
portfolio category. Since its inception on August 1, 1988, the Portfolio has
provided an average annual total return of 20.6%*, exceeding the 17.6% 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 invests in businesses that are worth inherently more, in our
judgment, than their asking prices. Looked at another way, we hope to preserve
our shareholders' capital in all market conditions, including market
corrections, because we remain disciplined about not overpaying for stocks and
because the businesses in which we invest tend to generate excess cash which
they use to create long-term value for shareholders. We focus on individual
companies and try to understand where their businesses are going over the next
several years, and are less concerned about attempting to predict where the
stock market is heading in the next month.

We expect the companies owned by the Portfolio to continue to improve their
results. The pending merger of McDonnell Douglas Corp. with Boeing Co. should
enable our McDonnell Douglas holding to perform well. In the coming months, we
expect E.I. du Pont de Nemours & Co. to announce a restructuring which will spur
its business performance. While the market has mistakenly, in our view,
neglected Citicorp stock much of this year, its business, particularly the
two-thirds generated by international operations, continues to surge. Moreover,
Citicorp continues to repurchase its shares at a very aggressive pace. Share
repurchases add value by reducing the number outstanding, making the remaining
shares worth more.

Our major disappointment this year is Wells Fargo & Co., which has
encountered severe difficulties in its merger with First Interstate Bancorp,
completed in April 1996. We do not foresee a resolution of these issues before
year end. Fortunately, the company continues to repurchase its stock at a high
rate of approximately 7% to 8% per year. For many years, Wells Fargo was the
most profitable large bank in the world, a position we expect it to regain in
the next 12 to 18 months. We continue to own the stock in anticipation it will
provide superior returns over time.

- ---------------
* 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

During the first half, we established new positions in BankBoston Corp. and
Computer Associates International Inc. and increased our holdings of nine
stocks, including Caterpillar, Inc., Federal Home Loan Mortgage Corp. and
McDonnell Douglas Corp. Eliminations were Newport News Shipbuilding, Inc. and
Sprint Corp. We reduced the Portfolio's investments in Countrywide Credit
Industries, Inc., R.R. Donnelly & Sons Co., Freeport McMoRan Copper & Gold
(Class B), Union Pacific Corp. and Unitrode Corp.

At June 30, 1997, the Portfolio's net assets were allocated 78% to common
stocks and securities convertible into common stocks, 1% to Treasury notes and
bonds, and 21% to cash and equivalents. The five largest equity positions were
E.I. du Pont de Nemours & Company, a major industrial company operating in
chemicals, fibers, polymers, petroleum and diversified businesses, representing
4.7% of the Portfolio's net assets; McDonnell Douglas Corp., the nation's
largest manufacturer of military aircraft and an important competitor in
commercial aircraft, being acquired by Boeing Co., 4.6% of net assets; Federal
Home Loan Mortgage Corp. (Freddie Mac), the second largest insurer of home
mortgages in the United States, 4.3% of net assets; Tele-Communications, Inc.
(Class A), a leading operator of cable television systems, 4.2% of net assets;
and Wells Fargo & Co., a leading bank in the Western United States, 4.2% of net
assets.

Major industry positions were in the banking sector, representing 11.8% of
the Portfolio's net assets; miscellaneous financial services, 10.1% of net
assets; chemicals, 7.6% of net assets; aerospace and defense, 6.8% of net
assets; and insurance, 5.0% of net assets.
<PAGE> 8

GLOBAL EQUITY PORTFOLIO

The Global Equity Portfolio seeks long-term growth by investing worldwide
in superior businesses which trade in the stock market at reasonable values. We
believe global diversification is an effective tool for controlling risk and
maximizing long-term results by capitalizing on investment opportunity wherever
it may exist. Although the U.S. stock market as measured by the Standard &
Poor's 500 Index has outperformed most other global markets in recent months,
returns from global markets have, in fact, compared very favorably with more
broadly based U.S. market indexes during this period.

The Portfolio continues to deliver favorable results with what we believe
to be below-market risk. In the 1997 first half, the Portfolio provided a total
return of 14.0%. This compared with a return of 15.4% on Morgan Stanley Capital
International's World Index in U.S. dollars with dividends net of local taxes
included (World Index) and the average total return of 12.5% for the global
funds in Lipper's Variable Insurance Products Performance Analysis Service
Report. The Portfolio's performance was 16th among the 39 funds in this Lipper
category.

The Portfolio delivered a total return of 21.8% in the 12 months ended June
30, 1997, compared with 22.3% for the World Index and an average of 18.5% for
the funds in the Lipper global funds category. The Portfolio's 12-month results
were 16th among the 36 funds in this Lipper universe. From inception on March 1,
1995 through June 30, 1997, the Portfolio's average annual total return of 20.9%
compared with 21.7% for the World Index. Returns for the Portfolio take into
account expenses incurred by the Portfolio, but not separate account charges
imposed by the insurance company.

In comparison to the country allocations in the World Index, the Portfolio
was overweighted in Continental Europe and Latin America at the end of June,
approximately market weighted in the United States and Canada, and underweighted
in Japan, Asia outside Japan and the United Kingdom. Market allocation is a
consequence of individual stock selection, not based on any formula to invest a
given percentage of assets in any particular country. We buy the stocks of
companies with superior business characteristics, and available at reasonable
valuations, regardless of where they are located.

Our major allocation change during the first half came in May, when we
identified many undervalued stocks in Japan in the wake of that stock market's
relentless price decline. We increased the Portfolio's Japanese investments,
primarily buying companies that are domestically oriented, since we are
concerned that the appreciation of the yen could dampen Japanese exports. New
positions included Sekisui Chemical (chemicals and housing), Sho-Bond Corp.
(building materials), Showa Denko (chemicals), Minolta (photo equipment and
supplies), Mycal (junior department stores) and Ryohin Keikaku (merchandising).
Compared with 10% of assets at the end of 1996, Japanese investments increased
to more than 14% of the Portfolio's net assets as of June 30, 1997. Our decision
to add to the Portfolio's Japanese holdings paid off, as the Japanese stock
market rallied strongly in the second quarter.

Many of our investments in Europe are benefiting from the wave of corporate
restructurings taking place, including mergers, acquisitions, divestitures and
downsizings, to improve performance and increase shareholder value. Two of the
United Kingdom companies held in the Portfolio -- Amstrad and Bridon -- were
taken over during the first half at significant premiums to our average purchase
prices.

In the United States, the Portfolio owns a diverse group of undervalued
companies with high cash flow and strong niche business positions, such as
Federal Home Loan Mortgage Corp. (Freddie Mac) and E.I. du Pont de Nemours & Co.
There were relatively few buy or sell transactions in the U.S. portion of the
Portfolio during the half.

We are optimistic about global markets. Low inflation, a worldwide
phenomenon, and the trend toward free-market economies are creating significant
investment opportunities for value-oriented investors like ourselves. At June
30, 1997, net assets of the Portfolio were allocated 58% to international
stocks, 33% to U.S. stocks and 9% to foreign and domestic cash and cash
equivalents. The largest investment positions outside the United States were in
Japan, the United Kingdom, Germany and France.
<PAGE> 9

The Portfolio's largest international holdings at June 30, 1997 were ACE,
Ltd., a Bermuda-based provider of excess directors and officers liability
insurance, representing 3.9% of the Portfolio's net assets; OY Nokia, AB, a
Finnish telecommunications equipment company, 1.4% of net assets; SAP AG, a
leading German developer of software for businesses worldwide, 1.4% of net
assets; Novartis AG, a Swiss-based pharmaceutical company, 1.1% of net assets;
and Sony Corp., the Japanese electronics company, 1.1% of net assets.

The Portfolio's largest U.S. equity holdings were Wells Fargo & Co., a
leading bank in the Western United States, 3.7% of net assets; Federal Home Loan
Mortgage Corp. (Freddie Mac), the second largest insurer of home mortgages in
the United States, 3.3% of net assets; McDonnell Douglas Corp., the nation's
largest manufacturer of military aircraft and an important competitor in
commercial aircraft, being acquired by Boeing Co., 3.1% of net assets; E.I. du
Pont de Nemours & Company, a major industrial company operating in chemicals,
fibers, polymers, petroleum and diversified businesses, 2.9% of net assets; and
McDonald's Corp., a premier fast-food company with growing global markets, 2.8%
of net assets.

Major industry positions were in the banking sector, 9.0% of net assets;
drugs and medical products, 7.4% of net assets; chemicals, 7.4% of net assets;
miscellaneous financial services, 7.0% of net assets; and telecommunications,
6.0% of net assets.
<PAGE> 10

U.S. GOVERNMENT INCOME PORTFOLIO

The 1997 first half was a period of modestly positive returns for investors
in fixed income securities. The bond market started out the year on a cautious
note, with intermediate and long-term securities experiencing negative returns
in the first quarter, reflecting investor concerns about the inflation outlook
and the prospect that interest rates might be raised by the Federal Reserve.
Rates were increased on March 25, but investors took the Fed's action in stride,
with the result that the bond market rallied in the second quarter, delivering
solid returns across all maturities.

For the half, the market provided a total return of 2.8%, as measured by
the Lehman Brothers Intermediate Government Bond Index (Lehman Index). The total
return (dividends paid and change in net asset value assuming the reinvestment
of dividends) of the U.S. Government Income Portfolio was 2.2%. This compared
with an average total return of 2.7% for the U.S. Government funds in Lipper's
Variable Insurance Products Performance Analysis Service Report. The Portfolio's
performance was 30th among the 34 funds in this Lipper universe.

The Portfolio is intended for investors seeking high current income from
investments in Government securities. The Portfolio primarily 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 generally invests in intermediate-term securities and places a
priority on maintaining a relatively stable net asset value (NAV) per share.

For the 12 months ended June 30, 1997, the total return of the Portfolio
was 5.5%, compared with 7.0% for the Lehman Index and an average of 7.2% for the
funds in the Lipper U.S. Government fund category. The Portfolio provided an
average annual total return of 7.3% from its inception on January 3, 1995
through June 30, 1997, versus 8.4% for the Lehman Index. Returns take into
account expenses incurred by the Portfolio, but not separate account charges
imposed by the insurance company.

During the first half, we added to the Portfolio's holdings of
mortgage-backed securities to capture additional yield. In addition, we
lengthened the average maturity of the Portfolio's investments to approximately
6.7 years at June 30, 1997 from approximately 3.8 years at December 31, 1996.

At the end of June 1997, the Portfolio's assets were allocated 49% to U.S.
Treasury securities, 29% to U.S. Government agency securities, 13% to
mortgage-related securities, 7% to corporate notes and bonds, and 2% to cash and
cash equivalents.
<PAGE> 11

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 4.80% as of June 30, 1997. The average dollar-weighted portfolio
maturity was 30 days.

We manage the Portfolio conservatively, recognizing that shareholders of
money market funds view liquidity and safety of principal as their most
important objectives. Safety of principal is our first priority. 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. At June 30, 1997, 81% of the Portfolio's assets were
allocated to short-term corporate notes, with the remaining assets invested in
U.S. Government agency securities.

Although the Money Market Portfolio seeks to maintain its share price at
$1.00, an investment in the Portfolio is not guaranteed or insured by the U.S.
Government, and there is no assurance that the Portfolio will maintain a
constant price of $1.00 per share.
<PAGE> 12

OCC ACCUMULATION TRUST
EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)

JUNE 30, 1997
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ---------- -----------
<C> <S> <C>
U.S. GOVERNMENT AGENCY NOTE - .9%
$ 240,000 Federal Home Loan Bank, 5.41%, 7/30/97(cost - $238,954).............. $ 238,954
----------
SHORT-TERM CORPORATE NOTES - 18.5%
AUTOMOTIVE - 3.3%
Ford Motor Credit Co.,
$ 150,000 5.51%, 7/15/97....................................................... $ 149,679
125,000 5.53%, 7/22/97....................................................... 124,597
555,000 5.54%, 7/22/97....................................................... 553,206
----------
827,482
----------
BANKING - 2.9%
745,000 Norwest Financial Inc., 5.53%, 7/14/97............................... 743,512
----------
MACHINERY/ENGINEERING - 3.4%
Deere (John) Capital Corp.,
180,000 5.51%, 7/17/97....................................................... 179,559
685,000 5.53%, 7/28/97....................................................... 682,159
----------
861,718
----------
MISCELLANEOUS FINANCIAL SERVICES - 4.5%
1,150,000 American Express Credit Corp., 5.51%, 7/17/97........................ 1,147,184
----------
TECHNOLOGY - 4.4%
1,100,000 IBM Credit Corp., 5.51%, 7/15/97..................................... 1,097,643
----------
Total Short-Term Corporate Notes (cost - $4,677,539)................. $ 4,677,539
----------

<CAPTION>
SHARES
<C> <S> <C>
COMMON STOCKS - 80.3%
AEROSPACE/DEFENSE - 5.3%
8,000 Lockheed Martin Corp. ............................................... $ 828,500
7,494 McDonnell Douglas Corp. ............................................. 513,339
----------
1,341,839
----------
BANKING - 6.4%
6,556 Citicorp ............................................................ 790,408
3,033 Wells Fargo & Co. ................................................... 817,393
----------
1,607,801
----------
CHEMICALS - 3.3%
4,000 du Pont (E.I.) de Nemours & Co. ..................................... 251,500
7,698 Hercules, Inc. ...................................................... 368,542
4,910 Monsanto Co. ........................................................ 211,437
----------
831,479
----------
CONGLOMERATES - 2.6%
4,312 General Electric Co. ................................................ 281,897
8,500 Tenneco, Inc......................................................... 384,094
----------
665,991
----------
</TABLE>
<PAGE> 13

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

JUNE 30, 1997

<TABLE>
<CAPTION>
SHARES VALUE
----------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
CONSUMER PRODUCTS - 2.0%
3,844 Avon Products, Inc. ................................................. $ 271,242
6,843 Mattel, Inc. ........................................................ 231,807
----------
503,049
----------
DRUGS & MEDICAL PRODUCTS - 2.8%
14,042 Becton, Dickinson & Co. ............................................. 710,876
----------
ELECTRONICS - 3.0%
4,038 Arrow Electronics, Inc.*............................................. 214,519
24,000 EG & G, Inc. ........................................................ 540,000
----------
754,519
----------
ENERGY - 1.1%
697 El Paso Natural Gas Co. ............................................. 38,335
4,996 Triton Energy Ltd.*.................................................. 228,879
----------
267,214
----------
FOOD SERVICES - 2.0%
10,500 McDonald's Corp. .................................................... 507,281
----------
HEALTH & HOSPITALS - 3.2%
27,750 Tenet Healthcare Corp.*.............................................. 820,359
----------
INSURANCE - 23.2%
16,700 ACE Ltd. ............................................................ 1,233,713
7,372 AFLAC, Inc. ......................................................... 348,327
1,262 American International Group, Inc. .................................. 188,511
12,000 Everest Reinsurance Holdings, Inc. .................................. 475,500
24,452 EXEL Ltd. ........................................................... 1,289,843
5,000 General Re Corp. .................................................... 910,000
10,000 Mid Ocean Ltd. ...................................................... 524,375
4,579 Progressive Corp. (Ohio)............................................. 398,373
13,000 RenaissanceRe Holdings Ltd. ......................................... 495,625
----------
5,864,267
----------
LEISURE - 2.3%
14,000 Carnival Corp. ...................................................... 577,500
----------
MACHINERY/ENGINEERING - 3.8%
9,000 Caterpillar, Inc. ................................................... 966,375
----------
MANUFACTURING - 4.1%
6,000 Armstrong World Industries, Inc. .................................... 440,250
17,560 LucasVarity Corp. PLC ADR............................................ 608,015
----------
1,048,265
----------
MISCELLANEOUS FINANCIAL SERVICES - 5.3%
19,912 Countrywide Credit Industries, Inc. ................................. 621,006
20,620 Federal Home Loan Mortgage Corp. .................................... 708,812
----------
1,329,818
----------
</TABLE>
<PAGE> 14

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

JUNE 30, 1997

<TABLE>
<CAPTION>
SHARES VALUE
- ---------- -----------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
PRINTING/PUBLISHING - 1.6%
11,000 Donnelley (R.R.) & Sons Co. ......................................... $ 402,875
----------
RETAIL - 2.2%
11,888 May Department Stores Co. ........................................... 561,708
----------
TELECOMMUNICATIONS - 2.7%
6,000 Sprint Corp. ........................................................ 315,750
25,000 Tele-Communications, Inc. (Class A)*................................. 371,875
----------
687,625
----------
TRANSPORTATION - 3.4%
4,300 AMR Corp.*........................................................... 397,750
16,000 Canadian Pacific Ltd................................................. 455,000
----------
852,750
----------
Total Common Stocks (cost - $14,087,737)............................. $20,301,591
----------
Total Investments (cost - $19,004,230).................... 99.7% $25,218,084
Other Assets in Excess of Liabilities..................... 0.3 74,626
----- -----------
Total Net Assets.......................................... 100.0% $25,292,710
===== ===========
</TABLE>

- ---------------
* Non-income producing security.

See accompanying notes to financial statements.
<PAGE> 15

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

JUNE 30, 1997

<TABLE>
<S> <C>
ASSETS
Investments, at value (cost - $19,004,230)...................................... $25,218,084
Cash............................................................................ 52,668
Dividends receivable............................................................ 20,848
Receivable from fund shares sold................................................ 14,368
Other assets.................................................................... 1,004
-----------
Total Assets.................................................................. 25,306,972
-----------

LIABILITIES
Investment advisory fee payable................................................. 1,667
Payable for fund shares redeemed................................................ 952
Other payables and accrued expenses............................................. 11,643
-----------
Total Liabilities............................................................. 14,262
-----------

Total Net Assets.............................................................. $25,292,710
===========

COMPOSITION OF NET ASSETS
Par value ($.01 per share)...................................................... $ 7,716
Paid-in-capital in excess of par................................................ 18,627,928
Accumulated undistributed net investment income................................. 139,630
Accumulated undistributed net realized gain on investments...................... 303,582
Net unrealized appreciation on investments...................................... 6,213,854
-----------

Total Net Assets.............................................................. $25,292,710
===========

Fund shares outstanding......................................................... 771,634
-----------

Net asset value per share....................................................... $ 32.78
===========
</TABLE>

See accompanying notes to financial statements.
<PAGE> 16

OCC ACCUMULATION TRUST
EQUITY PORTFOLIO
STATEMENT OF OPERATIONS (UNAUDITED)

FOR THE SIX MONTHS ENDED JUNE 30, 1997

<TABLE>
<S> <C>
INVESTMENT INCOME
Dividends...................................................................... $ 149,752
Interest....................................................................... 97,795
----------
Total investment income..................................................... 247,547
----------

OPERATING EXPENSES
Investment advisory fees (note 2A)............................................. 86,822
Custodian fees (note 1G)....................................................... 7,528
Transfer and dividend disbursing agent fees.................................... 4,626
Audit fees..................................................................... 4,165
Trustees' fees and expenses.................................................... 2,203
Reports and notices to shareholders............................................ 1,937
Legal fees..................................................................... 1,091
Miscellaneous.................................................................. 246
----------
Total operating expenses.................................................... 108,618
Less: Expenses offset (note 1G)............................................. (701)
----------
Net operating expenses................................................. 107,917
----------
Net investment income.................................................. 139,630
----------

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS - NET

Net realized gain on investments............................................... 303,581

Net change in unrealized appreciation (depreciation) on investments............ 2,471,711
----------

Net realized gain and change in unrealized appreciation (depreciation) on
investments................................................................ 2,775,292
----------

Net increase in net assets resulting from operations............................. $2,914,922
==========
</TABLE>

See accompanying notes to financial statements.
<PAGE> 17

OCC ACCUMULATION TRUST
EQUITY PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1997(1) DECEMBER 31, 1996
----------------- -----------------
<S> <C> <C>
OPERATIONS
Net investment income...................................... $ 139,630 $ 188,895
Net realized gain on investments........................... 303,581 672,433
Net change in unrealized appreciation (depreciation) on
investments.............................................. 2,471,711 2,218,378
----------- ----------
Net increase in net assets resulting from
operations.......................................... 2,914,922 3,079,706
----------- ----------

DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Net investment income...................................... (188,895) (111,781)
Net realized gains......................................... (672,433) (223,969)
----------- ----------
Total dividends and distributions to shareholders..... (861,328) (335,750)
----------- ----------

FUND SHARE TRANSACTIONS
Net proceeds from sales.................................... 3,388,606 9,184,397
Reinvestment of dividends and distributions................ 861,328 335,750
Cost of shares redeemed.................................... (853,816) (1,457,087)
----------- ----------
Net increase in net assets from fund share
transactions........................................ 3,396,118 8,063,060
----------- ----------

Total increase in net assets..................... 5,449,712 10,807,016

NET ASSETS
Beginning of period........................................ 19,842,998 9,035,982
----------- ----------
End of period (including undistributed net investment
income of $139,630 and $188,895, respectively)........... $25,292,710 $19,842,998
=========== ==========

SHARES ISSUED AND REDEEMED
Issued..................................................... 111,055 339,540
Issued in reinvestment of dividends and distributions...... 28,807 13,029
Redeemed................................................... (28,038) (53,448)
----------- ----------
Net increase.......................................... 111,824 299,121
=========== ==========
</TABLE>

- ---------------
(1) Unaudited.

See accompanying notes to financial statements.
<PAGE> 18

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

JUNE 30, 1997

(1) ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

OCC Accumulation Trust ( the "Trust") was organized May 12, 1994 as a
Massachusetts business trust and is registered under the Investment Company Act
of 1940, as amended, as a diversified, open-end management investment company.
The Trust is authorized to issue an unlimited number of six classes of shares of
beneficial interest at $.01 par value. The Trust is comprised of six portfolios:
the Equity Portfolio (the "Portfolio"), the Small Cap Portfolio, the Global
Equity Portfolio, the Managed 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 Trust is an investment vehicle for variable annuity and variable
life insurance contracts of various life insurance companies, and qualified
pension and retirement plans. 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) 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 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.

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

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

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

JUNE 30, 1997

(1) ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(D) DIVIDENDS AND DISTRIBUTIONS (CONTINUED)
not require reclassification. To the extent dividends and/or distributions
exceed current and accumulated earnings and profits for Federal income tax
purposes, they are reported as dividends and/or distributions of paid-in-capital
or tax return of capital.

(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 another reasonable basis.

(F) USE OF ESTIMATES

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

(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% on the first $400 million,
.75% on the next $400 million and .70% thereafter. The Adviser has voluntarily
agreed to waive that portion of the advisory fee necessary to limit total
operating expenses of the Portfolio to 1.00% (net of expenses offset) of average
net assets on an annual basis.

(B) Total brokerage commissions paid by the Portfolio for the six months ended
June 30, 1997 amounted to $4,820, of which Oppenheimer & Co., Inc., an affiliate
of the Adviser, received $1,518.

(3) PURCHASES AND SALES OF INVESTMENTS

For the six months ended June 30, 1997, purchases and sales of investment
securities, other than short-term securities, were $2,006,683 and $1,828,102,
respectively.

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

Aggregate gross unrealized appreciation for securities in which there is an
excess of value over tax cost is $6,214,033, aggregate gross unrealized
depreciation for securities in which there is an excess of tax cost over value
is $179 and net unrealized appreciation for Federal income tax purposes is
$6,213,854. Federal income tax cost basis of portfolio securities is $19,004,230
at June 30, 1997.
<PAGE> 20

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

JUNE 30, 1997

(5) AFFILIATED TRANSACTION

On July 22, 1997, PIMCO Advisors L.P. ("PIMCO Advisors"), a registered
investment adviser with approximately $119 billion in assets under management
through various subsidiaries and its affiliate Thomson Advisory Group Inc.
("TAG"), signed an Amended and Restated Merger Agreement with Oppenheimer Group,
Inc. ("OGI"), its subsidiary Oppenheimer Financial Corp. ("Opfin") and certain
related parties pursuant to which PIMCO Advisors and TAG and its successor, will
acquire the one-third managing general partner interest in Oppenheimer Capital,
its 1.0% general partner interest in OpCap Advisors, and its 1.0% general
partner interest in Oppenheimer Capital L.P. (the "Transaction"). If the
Transaction is consummated, it will involve a change in control of Oppenheimer
Capital and its subsidiary OpCap Advisors which will constitute an assignment
and termination of the Investment Advisory Agreement with the Trust. At a
meeting held on February 28, 1997, the Trustees, including all independent
Trustees, approved and determined to submit to shareholders for approval, a new
Investment Advisory Agreement with OpCap Advisors, substantially upon the same
terms and conditions as the existing Investment Advisory Agreement. Proxy
material will be sent to shareholders concerning the new Investment Advisory
Agreement.
<PAGE> 21

OCC ACCUMULATION TRUST
EQUITY PORTFOLIO
FINANCIAL HIGHLIGHTS

FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD:

<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
SIX MONTHS ENDED -------------------------- SEPTEMBER 16, 1994(1)
JUNE 30, 1997(7) 1996 1995 TO DECEMBER 31, 1994
---------------- ----------- ---------- ----------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of
period...................... $ 30.07 $ 25.05 $ 18.12 $ 18.57
----------- ----------- ---------- ----------
Income from investment
operations:
Net investment income......... 0.18 0.21 0.31 0.09
Net realized and unrealized
gain (loss) on
investments................. 3.81 5.52 6.71 (0.54)
----------- ----------- ---------- ----------
Total from investment
operations............... 3.99 5.73 7.02 (0.45)
----------- ----------- ---------- ----------
Dividends and distributions to
shareholders:
Dividends to shareholders from
net investment income....... (0.28) (0.24) (0.09) --
Distributions to shareholders
from net realized gains..... (1.00) (0.47) -- --
----------- ----------- ---------- ----------
Total dividends and
distributions to
shareholders............. (1.28) (0.71) (0.09) --
----------- ----------- ---------- ----------
Net asset value, end of
period...................... $ 32.78 $ 30.07 $ 25.05 $ 18.12
=========== =========== ========== ==========
Total return (2).............. 13.7% 23.4% 38.9% (2.4%)
=========== =========== ========== ==========
Net assets, end of period..... $ 25,292,710 $19,842,998 $9,035,982 $4,281,256
----------- ----------- ---------- ----------
Ratio of net operating
expenses to average net
assets (5).................. 1.00%(3,4) 0.93%(6) 0.72%(6) 0.72%(3,6)
----------- ----------- ---------- ----------
Ratio of net investment income
to average net assets....... 1.29%(3,4) 1.29%(6) 1.74%(6) 1.80%(3,6)
----------- ----------- ---------- ----------
Portfolio turnover rate....... 10% 36% 31% 6%
----------- ----------- ---------- ----------
Average commission rate....... $ 0.0566 $ 0.0588 -- --
----------- ----------- ---------- ----------
</TABLE>

- ---------------
(1) Commencement of operations.

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

(3) Annualized.

(4) Average net assets for the six months ended June 30, 1997 were $21,885,297.

(5) For fiscal periods ending after September 1, 1995, the ratios are calculated
to include expenses offset by earnings credits from a custodian bank (See
note 1G in Notes to Financial Statements).

(6) During the periods noted above, the Adviser waived a portion or all of its
fees and assumed a portion of the Portfolio's operating expenses. If such
waivers and assumptions had not been in effect, the ratios of net operating
expenses to average net assets and the ratios of net investment income to
average net assets would have been 1.05% and 1.15%, respectively, for the
year ended December 31, 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.

(7) Unaudited.
<PAGE> 22

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

JUNE 30, 1997
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ---------- -----------
<C> <S> <C>
U.S. GOVERNMENT AGENCY NOTE - 1.1%
$ 675,000 Federal Home Loan Mortgage Corp., 5.40%, 8/7/97 (cost - $671,254).... $ 671,254
-----------

SHORT-TERM CORPORATE NOTES - 14.3%
AUTOMOTIVE - 2.8%
$1,630,000 Ford Motor Credit Co., 5.53%, 7/15/97................................ $ 1,626,495
-----------
INSURANCE - 3.1%
1,840,000 Prudential Funding Corp., 5.54%, 7/31/97............................. 1,831,505
-----------
MACHINERY/ENGINEERING - 2.9%
Deere (John) Capital Corp.,
240,000 5.40%, 7/3/97........................................................ 239,928
1,500,000 5.49%, 7/3/97........................................................ 1,499,542
-----------
1,739,470
-----------
MISCELLANEOUS FINANCIAL SERVICES - 1.3%
740,000 Beneficial Corp., 5.50%, 7/16/97..................................... 738,304
-----------
TECHNOLOGY - 4.2%
2,500,000 IBM Credit Corp., 5.51%, 7/15/97..................................... 2,494,643
-----------

Total Short-Term Corporate Notes (cost - $8,430,417)................. $ 8,430,417
-----------

CONVERTIBLE CORPORATE BOND - .1%
REAL ESTATE - .1%
$ 49,995 Security Capital Group, Inc., 12.00%, 6/30/14 (A) (cost - $45,368)... $ 60,161
-----------

<CAPTION>
SHARES
<C> <S> <C>
COMMON STOCKS - 84.7%
ADVERTISING - .2%
18,000 Katz Media Group, Inc.*.............................................. $ 118,125
-----------
AEROSPACE/DEFENSE - 1.2%
28,800 Tracor, Inc.*........................................................ 723,600
-----------
AUTOMOTIVE - 1.9%
20,700 Borg-Warner Automotive, Inc. ........................................ 1,119,094
-----------
BUILDING & CONSTRUCTION - 2.6%
29,200 Chicago Bridge & Iron Co.*........................................... 646,050
17,800 Dal-Tile International, Inc.*........................................ 330,413
42,900 JLG Industries, Inc. ................................................ 584,512
-----------
1,560,975
-----------
CHEMICALS - 4.3%
47,100 McWhorter Technologies, Inc.*........................................ 1,124,513
57,200 Schulman (A.), Inc. ................................................. 1,408,550
-----------
2,533,063
-----------
</TABLE>
<PAGE> 23

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

JUNE 30, 1997

<TABLE>
<CAPTION>
SHARES VALUE
-----------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
COMPUTER SERVICES - 4.1%
22,100 BA Merchants Services, Inc.*......................................... $ 421,281
46,367 BancTec, Inc.*....................................................... 1,202,644
17,500 BDM International, Inc.*............................................. 402,500
25,800 Reynolds & Reynolds Co. ............................................. 406,350
-----------
2,432,775
-----------
DRUGS & MEDICAL PRODUCTS - 4.4%
21,100 Dentsply International, Inc. ........................................ 1,033,900
44,700 SpaceLabs Medical, Inc.*............................................. 1,139,850
23,200 Vital Signs, Inc. ................................................... 407,450
-----------
2,581,200
-----------
ELECTRONICS - 5.8%
30,300 EG & G, Inc. ........................................................ 681,750
54,700 Exar Corp.*.......................................................... 1,176,050
33,620 Oak Industries, Inc.*................................................ 966,575
24,400 Watts Industries, Inc.*.............................................. 585,600
-----------
3,409,975
-----------
ENERGY - 5.5%
35,400 KCS Energy, Inc. .................................................... 721,275
22,100 Nuevo Energy Co.*.................................................... 906,100
45,100 St. Mary Land & Exploration Co. ..................................... 1,584,138
-----------
3,211,513
-----------
HEALTH & HOSPITALS - 3.4%
68,500 Magellan Health Services, Inc*....................................... 2,020,750
-----------
INSURANCE - 12.8%
66,600 Capsure Holdings Corp.*.............................................. 861,637
38,000 Corvel Corp.*........................................................ 1,092,500
22,422 Delphi Financial Group, Inc.*........................................ 863,247
57,000 E.W. Blanch Holdings, Inc. .......................................... 1,521,188
46,500 Gryphon Holdings, Inc. .............................................. 709,125
14,000 Horace Mann Educators Corp. ......................................... 686,000
23,300 RenaissanceRe Holdings Ltd. ......................................... 888,313
26,700 United Wisconsin Services, Inc. ..................................... 899,456
-----------
7,521,466
-----------
MACHINERY/ENGINEERING - 4.8%
28,100 Ametek, Inc. ........................................................ 660,350
29,400 Durco International, Inc. ........................................... 859,950
16,900 Kaydon Corp. ........................................................ 838,663
19,200 United Dominion Industries, Ltd. .................................... 471,600
-----------
2,830,563
-----------
</TABLE>
<PAGE> 24

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

JUNE 30, 1997

<TABLE>
<CAPTION>
SHARES VALUE
-----------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
MANUFACTURING - 9.0%
183,900 Baldwin Technology Co. (Class A)*.................................... $ 551,700
53,000 Easco, Inc........................................................... 516,750
18,800 Jostens, Inc......................................................... 502,900
32,700 Keystone International, Inc.......................................... 1,134,281
44,400 Lydall, Inc.*........................................................ 937,950
55,600 Omniquip International, Inc.*........................................ 1,285,750
7,300 Roper Industries, Inc................................................ 378,687
-----------
5,308,018
-----------
MEDIA/BROADCASTING - 1.7%
24,500 American Radio Systems Corp.*........................................ 976,938
-----------
MISCELLANEOUS FINANCIAL SERVICES - 3.6%
32,500 BISYS Group, Inc.*................................................... 1,356,875
17,100 Enhance Financial Services Group, Inc. .............................. 750,262
-----------
2,107,137
-----------
PAPER PRODUCTS - .7%
22,500 Rock-Tenn Co. ....................................................... 395,156
-----------
PRINTING/PUBLISHING - 6.8%
24,900 Bowne & Co., Inc. ................................................... 868,387
15,800 Harland (John. H.) Co. .............................................. 360,437
88,100 Hollinger International, Inc. ....................................... 985,619
82,400 International Imaging Materials, Inc.*............................... 1,339,000
5,700 Merrill Corp......................................................... 207,338
92,500 Nu-Kote Holdings, Inc. (Class A)*.................................... 231,250
-----------
3,992,031
-----------
REAL ESTATE - .1%
66 Security Capital Group, Inc. (A)..................................... 83,073
-----------
RETAIL - .8%
24,400 Ann Taylor Stores Corp.*............................................. 475,800
-----------
TECHNOLOGY - 5.4%
132,000 Auspex Systems, Inc.*................................................ 1,270,500
7,100 Cable Design Technologies*........................................... 209,006
78,800 Wang Laboratories, Inc.*............................................. 1,679,425
-----------
3,158,931
-----------
TELECOMMUNICATIONS - 2.4%
18,300 ACC Corp.*........................................................... 565,013
800 Plantronics, Inc.*................................................... 40,100
22,300 TCA Cable TV, Inc. .................................................. 839,037
-----------
1,444,150
-----------
</TABLE>
<PAGE> 25

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

JUNE 30, 1997

<TABLE>
<CAPTION>
SHARES VALUE
- ---------- -----------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
TEXTILES/APPAREL - 2.2%
20,200 Burlington Industries, Inc.*......................................... $ 242,400
5,000 Guilford Mills, Inc.................................................. 104,062
23,500 Westpoint Stevens, Inc. (Class A)*................................... 919,438
-----------
1,265,900
-----------
TRANSPORTATION - 1.0%
41,350 Interpool, Inc....................................................... 609,913
-----------

Total Common Stocks (cost - $42,626,469)............................. $49,880,146
-----------
Total Investments (cost - $51,773,508)....................... 100.2% $59,041,978
Liabilities in Excess of Other Assets........................ (0.2) (93,309)
----- -----------
Total Net Assets............................................. 100.0% $58,948,669
===== ==========
</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, 1997
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Security Capital Group, Inc. 12.00%, 6/30/14.......... 9/16/94 $49,995 -- $ 91 $ 120
Security Capital Group, Inc. Common Stock............. 9/16/94 -- 66 949 1,259
</TABLE>

See accompanying notes to financial statements.
<PAGE> 26

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

JUNE 30, 1997

<TABLE>
<S> <C>
ASSETS
Investments, at value (cost - $51,773,508)...................................... $59,041,978
Cash............................................................................ 7,817
Receivable from investments sold................................................ 390,380
Receivable from fund shares sold................................................ 103,946
Dividends receivable............................................................ 16,266
Interest receivable............................................................. 6,795
Other assets.................................................................... 1,406
-----------
Total Assets.................................................................. 59,568,588
-----------

LIABILITIES
Payable for investments purchased............................................... 589,999
Payable for fund shares redeemed................................................ 6,101
Investment advisory fee payable................................................. 3,808
Other payables and accrued expenses............................................. 20,011
-----------
Total Liabilities............................................................. 619,919
-----------

Total Net Assets.............................................................. $58,948,669
===========

COMPOSITION OF NET ASSETS
Par value ($.01 per share)...................................................... $ 23,833
Paid-in-capital in excess of par................................................ 48,759,952
Accumulated undistributed net investment income................................. 129,800
Accumulated undistributed net realized gain on investments...................... 2,766,614
Net unrealized appreciation on investments...................................... 7,268,470
-----------

Total Net Assets.............................................................. $58,948,669
===========

Fund shares outstanding......................................................... 2,383,326
-----------

Net asset value per share....................................................... $ 24.73
===========
</TABLE>

See accompanying notes to financial statements.
<PAGE> 27

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

FOR THE SIX MONTHS ENDED JUNE 30, 1997

<TABLE>
<S> <C>
INVESTMENT INCOME
Interest....................................................................... $ 189,707
Dividends...................................................................... 153,844
----------
Total investment income..................................................... 343,551
----------

OPERATING EXPENSES
Investment advisory fees (note 2A)............................................. 172,578
Custodian fees (note 1G)....................................................... 15,699
Trustees' fees and expenses.................................................... 6,549
Transfer and dividend disbursing agent fees.................................... 4,751
Audit fees..................................................................... 4,413
Reports and notices to shareholders............................................ 4,136
Legal fees..................................................................... 1,560
Miscellaneous.................................................................. 4,891
----------
Total operating expenses.................................................... 214,577
Less: Expenses offset (note 1G)............................................. (826)
----------
Net operating expenses................................................. 213,751
----------
Net investment income.................................................. 129,800
----------

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS - NET

Net realized gain on investments............................................... 2,775,415

Net change in unrealized appreciation (depreciation) on investments............ 4,013,251
----------

Net realized gain and change in unrealized appreciation (depreciation) on
investments................................................................ 6,788,666
----------

Net increase in net assets resulting from operations............................. $6,918,466
==========
</TABLE>

See accompanying notes to financial statements.
<PAGE> 28

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

<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1997(1) DECEMBER 31, 1996
----------------- -----------------
<S> <C> <C>
OPERATIONS
Net investment income...................................... $ 129,800 $ 226,925
Net realized gain on investments........................... 2,775,415 1,679,412
Net change in unrealized appreciation (depreciation) on
investments.............................................. 4,013,251 2,142,715
----------- -----------
Net increase in net assets resulting from
operations.......................................... 6,918,466 4,049,052
----------- -----------

DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Net investment income...................................... (226,925) (211,870)
Net realized gains......................................... (1,600,322) (544,700)
----------- -----------
Total dividends and distributions to shareholders..... (1,827,247) (756,570)
----------- -----------

FUND SHARE TRANSACTIONS
Net proceeds from sales.................................... 20,049,793 17,604,938
Reinvestment of dividends and distributions................ 1,827,247 756,533
Cost of shares redeemed.................................... (2,276,261) (3,401,674)
----------- -----------
Net increase in net assets from fund share
transactions........................................ 19,600,779 14,959,797
----------- -----------

Total increase in net assets..................... 24,691,998 18,252,279

NET ASSETS
Beginning of period........................................ 34,256,671 16,004,392
----------- -----------

End of period (including undistributed net investment
income of $129,800 and $226,925, respectively)........... $58,948,669 $34,256,671
=========== ===========

SHARES ISSUED AND REDEEMED
Issued..................................................... 885,839 837,586
Issued in reinvestment of dividends and distributions...... 83,857 38,520
Redeemed................................................... (101,620) (164,530)
----------- -----------
Net increase.......................................... 868,076 711,576
=========== ===========
</TABLE>

- ---------------
(1) Unaudited.

See accompanying notes to financial statements.
<PAGE> 29

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

JUNE 30, 1997

(1) ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

OCC Accumulation Trust ( the "Trust") was organized May 12, 1994 as a
Massachusetts business trust and is registered under the Investment Company Act
of 1940, as amended, as a diversified, open-end management investment company.
The Trust is authorized to issue an unlimited number of six classes of shares of
beneficial interest at $.01 par value. The Trust is comprised of six portfolios:
the Equity Portfolio, the Small Cap Portfolio (the "Portfolio"), the Global
Equity Portfolio, the Managed 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 Trust is an investment vehicle for variable annuity and variable
life insurance contracts of various life insurance companies, and qualified
pension and retirement plans. 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) 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

(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.

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

JUNE 30, 1997

(D) DIVIDENDS AND DISTRIBUTIONS (CONTINUED)
(1) ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
reclassified within the capital accounts based on their Federal income tax
treatment; temporary differences do not require reclassification. To the extent
dividends and/or distributions exceed current and accumulated earnings and
profits for Federal income tax purposes, they are reported as dividends and/or
distributions of paid-in-capital or tax return of capital.

(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, 1997 amounted to $80,508, of which Oppenheimer & Co., Inc., an
affiliate of the Adviser, received $20,686.

(3) PURCHASES AND SALES OF SECURITIES

For the six months ended June 30, 1997, purchases and sales of investment
securities, other than short-term securities were $35,011,021 and $20,175,495,
respectively.

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

Aggregate gross unrealized appreciation for securities in which there is an
excess of value over tax cost is $8,547,833, aggregate gross unrealized
depreciation for securities in which there is an excess of tax cost over value
is $1,288,163, and net unrealized appreciation for Federal income tax purposes
is $7,259,670. Federal income tax cost basis of portfolio securities is
$51,782,308 at June 30, 1997.
<PAGE> 31

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

JUNE 30, 1997

(5) AFFILIATED TRANSACTION

OCC ACCUMULATION TRUST
SMALL CAP PORTFOLIO
FINANCIAL HIGHLIGHTS

FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD:

<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
SIX MONTHS ENDED --------------------------- SEPTEMBER 16, 1994(1)
JUNE 30, 1997(7) 1996 1995 TO DECEMBER 31, 1994
---------------- ----------- ----------- ---------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of
period..................... $ 22.61 $ 19.91 $ 17.38 $ 17.49
----------- ----------- ----------- ----------

Income from investment
operations:
Net investment income........ 0.03 0.14 0.26 0.06
Net realized and unrealized
gain (loss) on
investments................ 3.14 3.45 2.37 (0.17)
----------- ----------- ----------- ----------
Total from investment
operations.............. 3.17 3.59 2.63 (0.11)
----------- ----------- ----------- ----------

Dividends and distributions
to shareholders:
Dividends to shareholders
from net investment
income..................... (0.13) (0.25) (0.05) --
Distributions to shareholders
from net realized gains.... (0.92) (0.64) (0.05) --
----------- ----------- ----------- ----------
Total dividends and
distributions to
shareholders............ (1.05) (0.89) (0.10) --
----------- ----------- ----------- ----------

Net asset value, end of
period..................... $ 24.73 $ 22.61 $ 19.91 $ 17.38
=========== =========== =========== ==========

Total return (2)............. 14.6% 18.7% 15.2% (0.6%)
=========== =========== =========== ==========

Net assets, end of period.... $ 58,948,669 $34,256,671 $16,004,392 $ 9,210,443
----------- ----------- ----------- ----------

Ratio of net operating
expenses to average net
assets (5)................. 0.99%(3,4) 0.93%(6) 0.74%(6) 0.74%(3,6)
----------- ----------- ----------- ----------

Ratio of net investment
income to average net
assets..................... 0.60%(3,4) 1.03%(6) 1.75%(6) 1.22%(3,6)
----------- ----------- ----------- ----------

Portfolio turnover rate...... 54% 50% 69% 32%
----------- ----------- ----------- ----------

Average commission rate...... $ 0.0544 $ 0.0493 -- --
----------- ----------- ----------- ----------
</TABLE>

- ---------------
(1) Commencement of operations.

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

(3) Annualized.

(4) Average net assets for the six months ended June 30, 1997 were $43,502,064.

(5) For fiscal periods ending after September 1, 1995, the ratios are calculated
to include expenses offset by earnings credits from a custodian bank (See
note 1G in Notes to Financial Statements).

(6) During the periods noted above, the Adviser waived a portion or all of its
fees and assumed a portion of the Portfolio's operating expenses. If such
waivers and assumptions had not been in effect, the ratios of net operating
expenses to average net assets and the ratios of net investment income to
average net assets would have been, 1.01% and 0.92%, respectively, for the
year ended December 31, 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.

(7) Unaudited.
<PAGE> 33

OCC ACCUMULATION TRUST
MANAGED PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)

JUNE 30, 1997

<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ---------- ------------
<C> <S> <C>
U.S. GOVERNMENT AGENCY NOTES - 1.4%
Federal Home Loan Bank,
$ 525,000 5.36%, 7/1/97....................................................... $ 525,000
1,245,000 5.40%, 7/24/97...................................................... 1,240,705
2,190,000 5.40%, 8/7/97....................................................... 2,177,845
------------
Total U.S. Government Agency Notes (cost - $3,943,550).............. $ 3,943,550
------------

SHORT-TERM CORPORATE NOTES - 22.8%
AUTOMOTIVE - 1.8%
Ford Motor Credit Co.,
$4,445,000 5.53%, 7/31/97...................................................... $ 4,424,516
590,000 5.54%, 7/31/97...................................................... 587,276
------------
5,011,792
------------
BANKING - 4.3%
12,295,000 Norwest Financial Inc., 5.53%, 7/14/97.............................. 12,270,447
------------
CONGLOMERATES - 4.0%
11,400,000 General Electric Capital Corp., 5.54%, 7/31/97...................... 11,347,370
------------
MACHINERY/ENGINEERING - 2.9%
Deere (John) Capital Corp.,
4,830,000 5.45%, 7/3/97....................................................... 4,828,538
2,010,000 5.49%, 7/3/97....................................................... 2,009,387
1,390,000 5.53%, 7/28/97...................................................... 1,384,235
------------
8,222,160
------------
MISCELLANEOUS FINANCIAL SERVICES - 8.9%
10,000,000 American Express Credit Corp., 5.54%, 7/29/97....................... 9,956,911
5,380,000 Household Finance Corp., 5.50%, 7/14/97............................. 5,369,315
9,940,000 Merrill Lynch & Co., Inc., 5.55%, 7/21/97........................... 9,909,352
------------
25,235,578
------------
TECHNOLOGY - .9%
IBM Credit Corp.,
675,000 5.50%, 7/15/97...................................................... 673,556
1,810,000 5.51%, 7/15/97...................................................... 1,806,122
------------
2,479,678
------------
Total Short-Term Corporate Notes (cost - $64,567,025)............... $ 64,567,025
------------

U.S. TREASURY NOTES AND BONDS - .6%
$ 700,000 6.25%, 8/15/23...................................................... $ 648,046
630,000 7.875%, 4/15/98..................................................... 640,237
297,500 7.875%, 8/15/01..................................................... 313,538
------------
Total U.S. Treasury Notes and Bonds (cost - $1,512,217)............. $ 1,601,821
------------
</TABLE>
<PAGE> 34

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

JUNE 30, 1997

<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ---------- ------------
<C> <S> <C>
CONVERTIBLE CORPORATE BOND - .2%
REAL ESTATE - .2%
$ 614,371 Security Capital Group, Inc., 12.00%, 6/30/14 (A)
(cost - $557,508)................................................... $ 739,294
------------
SHARES
- ----------
CONVERTIBLE PREFERRED STOCK - .0%
RETAIL - .0%
2,478 Venture Stores, Inc., $3.25 Conv. Pfd. (cost - $102,527)............ $ 39,029
------------

COMMON STOCKS - 78.2%
AEROSPACE/DEFENSE - 6.8%
60,000 Lockheed Martin Corp. .............................................. $ 6,213,750
190,000 McDonnell Douglas Corp. ............................................ 13,015,000
------------
19,228,750
------------
BANKING - 11.8%
90,000 BankBoston Corp. ................................................... 6,485,625
97,000 Citicorp ........................................................... 11,694,562
10,400 First Empire State Corp. ........................................... 3,504,800
44,000 Wells Fargo & Co. .................................................. 11,858,000
------------
33,542,987
------------
CHEMICALS - 7.6%
210,000 du Pont (E.I.) de Nemours & Co. .................................... 13,203,750
100,000 Hercules, Inc. ..................................................... 4,787,500
80,000 Monsanto Co. ....................................................... 3,445,000
------------
21,436,250
------------
COMPUTER SERVICES - 1.0%
50,000 Computer Associates International Inc. ............................. 2,784,375
------------
CONGLOMERATES - 3.2%
200,000 Tenneco, Inc........................................................ 9,037,500
------------
CONSUMER PRODUCTS - 3.9%
325,200 Mattel, Inc. ....................................................... 11,016,150
------------
DRUGS & MEDICAL PRODUCTS - 2.3%
130,000 Becton, Dickinson & Co.............................................. 6,581,250
------------
ENERGY - 1.3%
70,000 Triton Energy Ltd.*................................................. 3,206,875
20,000 Union Pacific Resources Group, Inc.................................. 497,500
------------
3,704,375
------------
FOOD SERVICES - 3.6%
210,000 McDonald's Corp..................................................... 10,145,625
------------
</TABLE>
<PAGE> 35

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

JUNE 30, 1997

<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
INSURANCE - 5.0%
74,700 ACE Ltd............................................................. $ 5,518,462
138,600 EXEL Ltd............................................................ 7,311,150
15,400 Transamerica Corp................................................... 1,440,863
------------
14,270,475
------------
MACHINERY/ENGINEERING - 4.2%
110,000... Caterpillar, Inc.................................................... 11,811,250
------------
METALS & MINING - 2.0%
182,300 Freeport McMoRan Copper & Gold (Class B)............................ 5,674,088
------------
MISCELLANEOUS FINANCIAL SERVICES - 10.1%
70,000 American Express Co. ............................................... 5,215,000
130,000 Countrywide Credit Industries, Inc. ................................ 4,054,375
355,000 Federal Home Loan Mortgage Corp. ................................... 12,203,125
160,600 Federal National Mortgage Assoc. ................................... 7,006,175
------------
28,478,675
------------
PAPER PRODUCTS - 2.9%
150,000 Champion International Corp. ....................................... 8,287,500
------------
PRINTING/PUBLISHING - .3%
25,000 Donnelley (R.R.) & Sons Co. ........................................ 915,625
------------
RAILROADS - 2.1%
85,000 Union Pacific Corp. ................................................ 5,992,500
------------
REAL ESTATE - .4%
811 Security Capital Group, Inc. (A).................................... 1,020,796
------------
TECHNOLOGY - 5.0%
38,900 Intel Corp. ........................................................ 5,516,506
206,400 National Semiconductor Corp.*....................................... 6,321,000
48,000 Unitrode Corp.*..................................................... 2,418,000
------------
14,255,506
------------
TELECOMMUNICATIONS - 4.2%
800,000 Tele-Communications, Inc. (Class A)*................................ 11,900,000
------------
</TABLE>
<PAGE> 36

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

JUNE 30, 1997

<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
WASTE DISPOSAL - .5%
47,818 Waste Management Inc. .............................................. $ 1,536,153
------------

Total Common Stocks (cost - $157,878,096)........................... $221,619,830
------------
Total Investments (cost - $228,560,923)................ 103.2% $292,510,549
Liabilities in Excess of Other Assets.................. (3.2) (9,104,888)
----- ------------
Total Net Assets....................................... 100.0% $283,405,661
===== ============
</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, 1997
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Security Capital Group, Inc. 12.00%, 6/30/14..... 9/16/94 $614,371 -- $ 91 $ 120
Security Capital Group, Inc. Common Stock........ 9/16/94 -- 811 949 1,259
</TABLE>

See accompanying notes to financial statements.
<PAGE> 37

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

JUNE 30, 1997

<TABLE>
<S> <C>
ASSETS
Investments, at value (cost - $228,560,923).................................... $292,510,549
Cash........................................................................... 20,234
Receivable from fund shares sold............................................... 154,952
Interest receivable............................................................ 119,182
Dividends receivable........................................................... 101,991
Other assets................................................................... 4,301
------------
Total Assets................................................................. 292,911,209
------------

LIABILITIES
Payable for investments purchased.............................................. 9,303,187
Payable for fund shares redeemed............................................... 136,128
Investment advisory fee payable................................................ 18,581
Other payables and accrued expenses............................................ 47,652
------------
Total Liabilities............................................................ 9,505,548
------------

Total Net Assets............................................................. $283,405,661
============

COMPOSITION OF NET ASSETS
Par value ($.01 per share)..................................................... $ 71,753
Paid-in-capital in excess of par............................................... 213,136,971
Accumulated undistributed net investment income................................ 1,561,847
Accumulated undistributed net realized gain on investments..................... 4,685,464
Net unrealized appreciation on investments..................................... 63,949,626
------------

Total Net Assets............................................................. $283,405,661
============

Fund shares outstanding........................................................ 7,175,255
------------

Net asset value per share...................................................... $ 39.50
============
</TABLE>

See accompanying notes to financial statements.
<PAGE> 38

OCC ACCUMULATION TRUST
MANAGED PORTFOLIO
STATEMENT OF OPERATIONS (UNAUDITED)

FOR THE SIX MONTHS ENDED JUNE 30, 1997

<TABLE>
<S> <C>
INVESTMENT INCOME
Dividends..................................................................... $ 1,298,226
Interest...................................................................... 1,254,905
-----------
Total investment income.................................................... 2,553,131
-----------

OPERATING EXPENSES
Investment advisory fees (note 2A)............................................ 888,578
Reports and notices to shareholders........................................... 20,179
Custodian fees (note 1G)...................................................... 20,146
Trustees' fees and expenses................................................... 12,767
Audit fees.................................................................... 8,889
Transfer and dividend disbursing agent fees................................... 5,782
Legal fees.................................................................... 4,699
Miscellaneous................................................................. 30,941
-----------
Total operating expenses................................................... 991,981
Less: Expenses offset (note 1G)............................................ (698)
-----------
Net operating expenses................................................ 991,283
-----------
Net investment income................................................. 1,561,848
-----------

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS - NET

Net realized gain on investments.............................................. 4,685,469

Net change in unrealized appreciation (depreciation) on investments........... 24,338,046
-----------

Net realized gain and change in unrealized appreciation (depreciation) on
investments............................................................... 29,023,515
-----------

Net increase in net assets resulting from operations............................ $30,585,363
===========
</TABLE>

See accompanying notes to financial statements.
<PAGE> 39

OCC ACCUMULATION TRUST
MANAGED PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1997(1) DECEMBER 31, 1996
---------------- -----------------
<S> <C> <C>
OPERATIONS
Net investment income....................................... $ 1,561,848 $ 2,161,819
Net realized gain on investments............................ 4,685,469 6,639,637
Net change in unrealized appreciation (depreciation) on
investments............................................... 24,338,046 18,285,659
------------ ------------
Net increase in net assets resulting from operations... 30,585,363 27,087,115
------------ ------------

DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Net investment income....................................... (2,161,819) (1,378,070)
Net realized gains.......................................... (6,639,642) (878,874)
------------ ------------
Total dividends and distributions to shareholders...... (8,801,461) (2,256,944)
------------ ------------

FUND SHARE TRANSACTIONS
Net proceeds from sales..................................... 82,323,735 79,297,599
Reinvestment of dividends and distributions................. 8,801,461 2,256,944
Cost of shares redeemed..................................... (10,231,531) (24,844,767)
------------ ------------
Net increase in net assets from fund share
transactions......................................... 80,893,665 56,709,776
------------ ------------

Total increase in net assets...................... 102,677,567 81,539,947

NET ASSETS
Beginning of period......................................... 180,728,094 99,188,147
------------ ------------
End of period (including undistributed net investment income
of $1,561,847 and $2,161,818, respectively)............... $283,405,661 $ 180,728,094
============ ============

SHARES ISSUED AND REDEEMED
Issued...................................................... 2,214,230 2,403,077
Issued in reinvestment of dividends and distributions....... 243,943 73,016
Redeemed.................................................... (274,288) (775,472)
------------ ------------
Net increase........................................... 2,183,885 1,700,621
============ ============
</TABLE>

- ---------------
(1) Unaudited.

See accompanying notes to financial statements.
<PAGE> 40

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

JUNE 30, 1997

(1) ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

OCC Accumulation Trust (the "Trust") was organized May 12, 1994 as a
Massachusetts business trust and is registered under the Investment Company Act
of 1940, as amended, as a diversified, open-end management investment company.
The Trust is authorized to issue an unlimited number of six classes of shares of
beneficial interest at $.01 par value. The Trust is comprised of six portfolios:
the Equity Portfolio, the Small Cap Portfolio, the Global Equity Portfolio, the
Managed 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 Trust is an investment vehicle for variable annuity and variable
life insurance contracts of various life insurance companies, and qualified
pension and retirement plans. 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.

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

JUNE 30, 1997

(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, 1997 amounted to $64,187, of which Oppenheimer & Co., Inc., an
affiliate of the Adviser, received $24,908.

(3) PURCHASES AND SALES OF INVESTMENTS

For the six months ended June 30, 1997, purchases and sales of investment
securities, other than short-term securities, were $51,856,834 and $13,672,297,
respectively.

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

Aggregate gross unrealized appreciation for securities in which there is an
excess of value over tax cost is $64,137,022, aggregate gross unrealized
depreciation for securities in which there is an excess of tax cost over value
is $187,396 and net unrealized appreciation for Federal income tax purposes is
$63,949,626. Federal income tax cost basis of portfolio securities is
$228,560,923 at June 30, 1997.
<PAGE> 42

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

JUNE 30, 1997

(5) AFFILIATED TRANSACTION

OCC ACCUMULATION TRUST
MANAGED PORTFOLIO
FINANCIAL HIGHLIGHTS

FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD:

<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
SIX MONTHS ENDED ----------------------------- SEPTEMBER 16, 1994(1)
JUNE 30, 1997(7) 1996 1995 TO DECEMBER 31, 1994
---------------- ------------ ------------ ---------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of
period..................... $ 36.21 $ 30.14 $ 20.83 $ 21.80
------------ ------------ ----------- -----------
Income from investment
operations:
Net investment income........ 0.18 0.43 0.42 0.14
Net realized and unrealized
gain (loss) on
investments................ 4.73 6.31 9.02 (1.11)
------------ ------------ ----------- -----------
Total from investment
operations.............. 4.91 6.74 9.44 (0.97)
------------ ------------ ----------- -----------
Dividends and distributions
to shareholders:
Dividends to shareholders
from net investment
income..................... (0.40) (0.41) (0.13) --
Distributions to shareholders
from net realized gains.... (1.22) (0.26) -- --
------------ ------------ ----------- -----------
Total dividends and
distributions to
shareholders............ (1.62) (0.67) (0.13) --
------------ ------------ ----------- -----------
Net asset value, end of
period..................... $ 39.50 $ 36.21 $ 30.14 $ 20.83
============ ============ =========== ===========
Total return (2)............. 14.0% 22.8% 45.6% (4.4%)
============ ============ =========== ===========
Net assets, end of period.... $283,405,661 $180,728,094 $ 99,188,147 $54,943,371
------------ ------------ ----------- -----------
Ratio of net operating
expenses to average net
assets (5)................. 0.89%(3,4) 0.84%(6) 0.66%(6) 0.66%(3,6)
------------ ------------ ----------- -----------
Ratio of net investment
income to average net
assets..................... 1.41%(3,4) 1.66%(6) 1.85%(6) 2.34%(3,6)
------------ ------------ ----------- -----------
Portfolio turnover rate...... 7% 27% 22% 8%
------------ ------------ ----------- -----------
Average commission rate...... $ 0.0574 $ 0.0592 -- --
------------ ------------ ----------- -----------
</TABLE>

- ---------------
(1) Commencement of operations.

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

(3) Annualized.

(4) Average net assets for the six months ended June 30, 1997 were $223,985,374.

(5) For fiscal periods ending after September 1, 1995, the ratios are calculated
to include expenses offset by earnings credits from a custodian bank (See
note 1G in Notes to Financial Statements).

(6) During the periods noted above, the Adviser waived a portion of its fees. If
such waivers had not been in effect, the ratios of net operating expenses to
average net assets and the ratios of net investment income to average net
assets would have been, 0.85% and 1.65%, respectively, for the year ended
December 31, 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.

(7) Unaudited.
<PAGE> 44

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

JUNE 30, 1997

<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- --------- ----------
<C> <S> <C>
U.S. GOVERNMENT AGENCY NOTES - 19.8%
$ 80,000 Federal Farm Credit Bank, 5.18%, 10/17/97.......................... $ 78,757
960,000 Federal Home Loan Bank, 6.00%, 7/1/97.............................. 960,000
----------
Total U.S. Government Agency Notes (amortized cost - $1,038,757)... $1,038,757
----------
SHORT-TERM CORPORATE NOTES - 80.5%
AUTOMOTIVE - 9.1%
$ 150,000 American Honda Finance Corp., 5.58%, 7/24/97....................... $ 149,465
170,000 Ford Motor Credit Co., 5.58%, 9/8/97............................... 168,182
160,000 General Motors Acceptance Corp., 5.56%, 8/25/97.................... 158,641
----------
476,288
----------
BANKING - 8.6%
100,000 Morgan (J.P.) & Co., Inc., 5.50%, 7/23/97.......................... 99,664
150,000 Svenska Handelsbanken Inc., 5.60%, 7/1/97.......................... 150,000
200,000 UBS Finance Delaware, Inc., 5.52%, 7/14/97......................... 199,601
----------
449,265
----------
BROKERAGE - 5.6%
150,000 Goldman Sachs Group, L.P., 5.62%, 9/2/97........................... 148,525
150,000 Morgan Stanley Group, Inc., 5.56%, 8/11/97......................... 149,050
----------
297,575
----------
CONGLOMERATES - 6.8%
190,000 General Electric Capital Corp., 5.56%, 10/27/97.................... 186,537
175,000 Mitsubishi International, 5.60%, 7/28/97........................... 174,265
----------
360,802
----------
ENTERTAINMENT - 3.8%
200,000 Walt Disney Co., 5.48%, 7/7/97..................................... 199,817
----------
INSURANCE - 5.8%
120,000 Aetna Services Inc., 5.62% 7/7/97.................................. 119,888
185,000 Prudential Funding Corp., 5.53%, 7/16/97........................... 184,574
----------
304,462
----------
MACHINERY/ENGINEERING - 5.6%
140,000 Deere (John) Capital Corp., 5.54%, 9/15/97......................... 138,363
160,000 Pitney Bowes Credit Corp., 5.65%, 10/1/97.......................... 157,690
----------
296,053
----------
</TABLE>
<PAGE> 45

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

JUNE 30, 1997

<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- --------- ----------
<C> <S> <C>
SHORT-TERM CORPORATE NOTES (CONTINUED)
MISCELLANEOUS FINANCIAL SERVICES - 11.4%
$ 160,000 American Express Credit Corp., 5.56%, 7/7/97....................... $ 159,852
160,000 Associates Corp. N.A., 5.55%, 8/11/97.............................. 158,988
110,000 Beneficial Corp., 5.31%, 7/14/97................................... 109,789
170,000 Household Finance Corp., 5.52%, 7/18/97............................ 169,557
----------
598,186
----------
SOVEREIGN - 3.4%
180,000 Eksportfinans A/S, 5.60%, 8/29/97.................................. 178,348
----------
TECHNOLOGY - 6.5%
185,000 IBM Credit Corp., 5.54%, 8/18/97................................... 183,633
160,000 Motorola Credit Corp., 5.50%, 7/24/97.............................. 159,438
----------
343,071
----------
TELECOMMUNICATIONS - 8.2%
110,000 American Telephone & Telegraph Co., 5.52%, 7/28/97................. 109,544
120,000 Ameritech Corp., 5.50%, 7/14/97.................................... 119,762
200,000 BellSouth Telecommunications Inc., 5.47%, 7/2/97................... 199,970
----------
429,276
----------
TOBACCO/BEVERAGES/FOOD PRODUCTS - 5.7%
120,000 Coca Cola Co., 5.40%, 7/29/97...................................... 119,491
180,000 PepsiCo Inc., 5.47%, 7/2/97........................................ 179,973
----------
299,464
----------

Total Short-Term Corporate Notes (amortized cost - $4,232,607)..... $4,232,607
----------
Total Investments (amortized cost - $5,271,364)............ 100.3% $5,271,364
Liabilities in Excess of Other Assets...................... (0.3) (17,639)
----- ----------
Total Net Assets........................................... 100.0% $5,253,725
===== =========
</TABLE>

See accompanying notes to financial statements.
<PAGE> 46

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

JUNE 30, 1997

<TABLE>
<S> <C>
ASSETS
Investments, at value (amortized cost - $5,271,364).............................. $5,271,364
Cash............................................................................. 5,443
Other assets..................................................................... 585
----------
Total Assets................................................................... 5,277,392
----------

LIABILITIES
Dividends payable................................................................ 7,460
Payable for fund shares redeemed................................................. 2,614
Investment advisory fee payable.................................................. 173
Other payables and accrued expenses.............................................. 13,420
----------
Total Liabilities.............................................................. 23,667
----------

Total Net Assets............................................................... $5,253,725
==========

COMPOSITION OF NET ASSETS
Par value ($.01 per share)....................................................... $ 52,537
Paid-in-capital in excess of par................................................. 5,201,207
Accumulated net realized loss on investments..................................... (19)
----------

Total Net Assets............................................................... $5,253,725
==========

Fund shares outstanding.......................................................... 5,253,743
----------

Net asset value per share........................................................ $ 1.00
==========
</TABLE>

See accompanying notes to financial statements.
<PAGE> 47

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

FOR THE SIX MONTHS ENDED JUNE 30, 1997

<TABLE>
<S> <C>
INVESTMENT INCOME
Interest........................................................................ $129,999
--------

OPERATING EXPENSES
Investment advisory fees (note 2)............................................... 9,477
Custodian fees (note 1G)........................................................ 4,686
Transfer and dividend disbursing agent fees..................................... 4,527
Audit fees...................................................................... 3,873
Legal fees...................................................................... 955
Reports and notices to shareholders............................................. 612
Miscellaneous................................................................... 2,820
--------
Total operating expenses..................................................... 26,950
Less: Investment advisory fees waived (note 2)............................... (3,439)
Less: Expenses offset (note 1G).............................................. (208)
--------
Net operating expenses.................................................. 23,303
--------
Net investment income................................................... 106,696
--------

REALIZED LOSS ON INVESTMENTS - NET

Net realized loss on investments................................................ (6)
--------

Net increase in net assets resulting from operations.............................. $106,690
========
</TABLE>

See accompanying notes to financial statements.
<PAGE> 48

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

<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1997(1) DECEMBER 31, 1996
----------------- -----------------
<S> <C> <C>
OPERATIONS
Net investment income...................................... $ 106,696 $ 181,416
Net realized loss on investments........................... (6) (14)
----------- -----------
Net increase in net assets resulting from
operations.......................................... 106,690 181,402
----------- -----------

DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Net investment income...................................... (106,696) (181,416)
Net realized gains......................................... -- (46)
----------- -----------
Total dividends and distributions to shareholders..... (106,696) (181,462)
----------- -----------

FUND SHARE TRANSACTIONS
Net proceeds from sales.................................... 2,103,920 6,146,104
Reinvestment of dividends and distributions................ 99,926 182,704
Cost of shares redeemed.................................... (2,229,157) (5,405,790)
----------- -----------
Net increase (decrease) in net assets from fund share
transactions........................................ (25,311) 923,018
----------- -----------

Total increase (decrease) in net assets.......... (25,317) 922,958

NET ASSETS
Beginning of period........................................ 5,279,042 4,356,084
----------- -----------
End of period (including undistributed net investment
income of $0 and $0, respectively)....................... $ 5,253,725 $ 5,279,042
=========== ===========

SHARES ISSUED AND REDEEMED
Issued..................................................... 2,103,920 6,146,104
Issued in reinvestment of dividends and distributions...... 99,926 182,704
Redeemed................................................... (2,229,157) (5,405,790)
----------- -----------
Net increase (decrease)............................... (25,311) 923,018
=========== ===========
</TABLE>

- ---------------
(1) Unaudited.

See accompanying notes to financial statements.
<PAGE> 49

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

JUNE 30, 1997

(1) ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

OCC Accumulation Trust ( the "Trust") was organized May 12, 1994 as a
Massachusetts business trust and is registered under the Investment Company Act
of 1940, as amended, as a diversified, open-end management investment company.
The Trust is authorized to issue an unlimited number of six classes of shares of
beneficial interest at $.01 par value. The Trust is comprised of six portfolios:
the Equity Portfolio, the Small Cap Portfolio, the Global Equity Portfolio, the
Managed 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 Trust is an investment vehicle for variable annuity and variable
life insurance contracts of various life insurance companies, and qualified
pension and retirement plans. 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. The amortized cost method involves valuing a security at cost on
the date of purchase and thereafter assuming a constant dollar amortization to
maturity of the difference between the principal amount due at maturity and the
initial cost of the security.

(B) FEDERAL INCOME TAXES

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

(F) USE OF ESTIMATES

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

JUNE 30, 1997

(1) ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(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%. The Adviser has agreed to waive
that portion of the advisory fee necessary to limit total operating expenses of
the Portfolio to 1.00% (net of expenses offset) of average net assets on an
annual basis.

(3) PURCHASES AND SALES OF INVESTMENTS

For the six months ended June 30, 1997, purchases and sales/maturities of
investment securities, were $24,904,984 and $25,044,398, respectively.

(4) AFFILIATED TRANSACTION

OCC ACCUMULATION TRUST
MONEY MARKET PORTFOLIO
FINANCIAL HIGHLIGHTS

FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD:

<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
SIX MONTHS ENDED ------------------------- SEPTEMBER 16, 1994(1)
JUNE 30, 1997(7) 1996 1995 TO DECEMBER 31, 1994
---------------- ---------- ---------- ---------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of
period....................... $ 1.00 $ 1.00 $ 1.00 $ 1.00
---------- ---------- ---------- ----------
Income from investment
operations:
Net investment income.......... 0.02 0.04 0.05 0.01
Net realized gain (loss) on
investments.................. (0.00) (0.00) 0.00 --
---------- ---------- ---------- ----------
Total from investment
operations................ 0.02 0.04 0.05 0.01
---------- ---------- ---------- ----------
Dividends and distributions to
shareholders:
Dividends to shareholders from
net investment income........ (0.02) (0.04) (0.05) (0.01)
Distributions to shareholders
from net realized gains...... -- (0.00) -- --
---------- ---------- ---------- ----------
Total dividends and
distributions to
shareholders.............. (0.02) (0.04) (0.05) (0.01)
---------- ---------- ---------- ----------
Net asset value, end of
period....................... $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========== ========== ==========

Total return (2)............... 2.3% 4.5% 5.1% 1.2%
========== ========== ========== ==========
Net assets, end of period...... $5,253,725 $5,279,042 $4,356,084 $ 3,519,526
---------- ---------- ---------- ----------
Ratio of net operating expenses
to average net assets
(5,6)........................ 0.99%(3,4) 1.01% 1.00% 1.00%(3)
---------- ---------- ---------- ----------
Ratio of net investment income
to average net assets (6).... 4.50%(3,4) 4.43% 4.94% 4.13%(3)
---------- ---------- ---------- ----------
</TABLE>

- ---------------
(1) Commencement of operations.

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

(3) Annualized.

(4) Average net assets for the six months ended June 30, 1997 were $4,777,776.

(5) For fiscal periods ending after September 1, 1995, the ratios are calculated
to include expenses offset by earnings credits from a custodian bank (See
note 1G in Notes to Financial Statements).

(6) During the periods noted above, the Adviser waived a portion or all of its
fees and assumed a portion of the Portfolio's operating expenses. If such
waivers and assumptions had not been in effect, the ratios of net operating
expenses to average net assets and the ratios of net investment income to
average net assets would have been 1.14% and 4.36%, annualized,
respectively, for the six months ended June 30, 1997, 1.30% and 4.13%,
respectively, for the year ended December 31, 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.

(7) Unaudited.
<PAGE> 52

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

JUNE 30, 1997

<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ---------- ----------
<C> <S> <C> <C>
U.S. TREASURY NOTES - 49.1%
$ 300,000 5.75%, 8/15/03..................................................... $ 289,686
480,000 5.875%, 1/31/99.................................................... 479,025
1,100,000 6.00%, 9/30/98..................................................... 1,101,199
650,000 6.25%, 4/30/01..................................................... 648,173
620,000 6.50%, 10/15/06.................................................... 617,384
125,000 7.25%, 5/15/04..................................................... 130,293
----------
Total U.S. Treasury Notes (cost - $3,250,869)...................... $3,265,760
----------

U.S. GOVERNMENT AGENCY NOTES - 28.8%
Federal Farm Credit Bank,
$ 25,000 5.41%, 7/2/97...................................................... $ 24,996
75,000 8.65%, 10/1/99..................................................... 78,633
Federal Home Loan Bank,
100,000 8.09%, 12/28/04.................................................... 107,937
155,000 8.60%, 8/25/99..................................................... 162,265
Federal Home Loan Mortgage Corp.,
175,000 6.22%, 3/24/03..................................................... 171,747
300,000 7.71%, 6/21/04..................................................... 303,984
125,000 7.75%, 11/7/01..................................................... 130,546
150,000 8.115%, 1/31/05.................................................... 161,788
Federal National Mortgage Assoc.,
60,000 5.375%, 6/10/98.................................................... 59,672
150,000 9.20%, 9/11/00..................................................... 162,070
150,000 Private Export Funding Corp., 9.10%, 10/30/98........................ 155,601
Student Loan Marketing Assoc.,
75,000 7.00%, 3/3/98...................................................... 75,563
100,000 7.20%, 11/9/00..................................................... 102,328
Tennessee Valley Authority,
150,000 6.00%, 11/1/00..................................................... 147,962
65,000 8.375%, 10/1/99.................................................... 67,783
----------
Total U.S. Government Agency Notes (cost - $1,906,262)............. $1,912,875
----------
</TABLE>
<PAGE> 53

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

JUNE 30, 1997

<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ---------- ----------
<C> <S> <C> <C>
MORTGAGE-RELATED SECURITIES - 13.6%
Federal National Mortgage Assoc.,
$ 173,804 6.50%, 5/1/26...................................................... $ 166,363
182,890 7.00%, 1/1/10...................................................... 183,403
146,602 8.00%, 8/1/24...................................................... 150,175
115,003 8.00%, 12/1/24..................................................... 118,056
7,502 9.00%, 8/1/02...................................................... 7,778
17,538 9.50%, 12/1/06..................................................... 18,307
40,110 9.50%, 3/1/19...................................................... 43,180
72,407 9.50%, 12/1/19..................................................... 77,814
133,808 Government National Mortgage Assoc., 8.50%, 3/15/25.................. 139,117
----------
Total Mortgage-Related Securities (cost - $889,581)................ $ 904,193
----------

CORPORATE NOTES - 6.9%
CONGLOMERATES - 1.6%
$ 100,000 General Electric Capital Corp., 8.375%, 3/1/01....................... $ 105,481
----------
MISCELLANEOUS FINANCIAL SERVICES - 5.3%
125,000 Associates Corp., N.A., 5.25%, 3/30/00............................... 120,928
125,000 International Lease Finance Corp., 6.125%, 11/1/99................... 124,060
100,000 Lehman Brothers Holdings, Inc., 8.50%, 5/1/07........................ 107,652
----------
352,640
----------
Total Corporate Notes (cost - $451,722)............................ $ 458,121
----------
Total Investments (cost - $6,498,434)....................... 98.4% $6,540,949
Other Assets in Excess of Liabilities....................... 1.6 106,978
----- ----------
Total Net Assets............................................ 100.0% $6,647,927
===== ==========
</TABLE>

See accompanying notes to financial statements.
<PAGE> 54

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

JUNE 30, 1997

<TABLE>
<S> <C>
ASSETS
Investments, at value (cost - $6,498,434)........................................ $6,540,949
Cash............................................................................. 27,445
Interest receivable.............................................................. 96,672
Receivable from fund shares sold................................................. 14,884
Other assets..................................................................... 1,000
----------
Total Assets................................................................... 6,680,950
----------

LIABILITIES
Dividends payable................................................................ 11,258
Payable for fund shares redeemed................................................. 2,573
Investment advisory fee payable.................................................. 275
Other payables and accrued expenses.............................................. 18,917
----------
Total Liabilities.............................................................. 33,023
----------

Total Net Assets............................................................... $6,647,927
==========

COMPOSITION OF NET ASSETS
Par value ($.01 per share)....................................................... $ 6,436
Paid-in-capital in excess of par................................................. 6,622,946
Accumulated net realized loss on investments..................................... (23,970)
Net unrealized appreciation on investments....................................... 42,515
----------

Total Net Assets............................................................... $6,647,927
==========

Fund shares outstanding.......................................................... 643,563
----------

Net asset value per share........................................................ $ 10.33
==========
</TABLE>

See accompanying notes to financial statements.
<PAGE> 55

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

FOR THE SIX MONTHS ENDED JUNE 30, 1997

<TABLE>
<S> <C>
INVESTMENT INCOME
Interest........................................................................ $161,985
--------
OPERATING EXPENSES
Investment advisory fees (note 2)............................................... 14,993
Custodian fees (note 1G)........................................................ 10,174
Transfer and dividend disbursing agent fees..................................... 6,033
Audit fees...................................................................... 3,838
Reports and notices to shareholders............................................. 1,136
Legal fees...................................................................... 900
Miscellaneous................................................................... 1,238
--------
Total operating expenses..................................................... 38,312

Less: Investment advisory fees waived (note 2)............................... (13,132)

Less: Expenses offset (note 1G).............................................. (196)
--------
Net operating expenses.................................................. 24,984
--------
Net investment income................................................... 137,001
--------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS - NET

Net realized loss on investments................................................ (16,079)

Net change in unrealized appreciation (depreciation) on investments............. 26,949
--------
Net realized loss and change in unrealized appreciation (depreciation) on
investments................................................................. 10,870
--------
Net increase in net assets resulting from operations.............................. $147,871
========
</TABLE>

See accompanying notes to financial statements.
<PAGE> 56

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

<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1997(1) DECEMBER 31, 1996
---------------- -----------------
<S> <C> <C>
OPERATIONS
Net investment income........................................ $ 137,001 $ 130,053
Net realized loss on investments............................. (16,079) (7,891)
Net change in unrealized appreciation (depreciation) on
investments................................................ 26,949 (26,424)
---------- ----------
Net increase in net assets resulting from operations.... 147,871 95,738
---------- ----------

DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Net investment income........................................ (137,001) (130,053)
Net realized gains........................................... -- --
---------- ----------
Total dividends and distributions to shareholders....... (137,001) (130,053)
---------- ----------

FUND SHARE TRANSACTIONS
Net proceeds from sales...................................... 3,495,129 2,180,216
Reinvestment of dividends and distributions.................. 125,744 130,663
Cost of shares redeemed...................................... (405,814) (297,024)
---------- ----------
Net increase in net assets from fund share
transactions.......................................... 3,215,059 2,013,855
---------- ----------

Total increase in net assets....................... 3,225,929 1,979,540

NET ASSETS
Beginning of period.......................................... 3,421,998 1,442,458
---------- ----------
End of period (including undistributed net investment income
of $0 and $0, respectively)................................ $6,647,927 $ 3,421,998
========== ==========

SHARES ISSUED AND REDEEMED
Issued....................................................... 341,129 209,939
Issued in reinvestment of dividends and distributions........ 12,193 12,589
Redeemed..................................................... (39,494) (28,592)
---------- ----------
Net increase............................................ 313,828 193,936
========== ==========
</TABLE>

- ---------------
(1) Unaudited.

See accompanying notes to financial statements.
<PAGE> 57

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

JUNE 30, 1997

(1) ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

OCC Accumulation Trust (the "Trust") was organized May 12, 1994 as a
Massachusetts business trust and is registered under the Investment Company Act
of 1940, as amended, as a diversified, open-end management investment company.
The Trust is authorized to issue an unlimited number of six classes of shares of
beneficial interest at $.01 par value. The Trust is comprised of six portfolios:
the Equity Portfolio, the Small Cap Portfolio, the Global Equity Portfolio, the
Managed Portfolio, the U.S. Government Income Portfolio (the "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 Trust is an investment vehicle for variable annuity and variable
life insurance contracts of various life insurance companies, and qualified
pension and retirement plans. 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) 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 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 income tax treatment; temporary
differences do not require reclassification. To the extent dividends and/or
distributions exceed current and accumulated earnings and profits for Federal
income tax purposes, they are reported as dividends and/or distributions of
paid-in-capital or tax return of capital.
<PAGE> 58

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

JUNE 30, 1997

(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 accrued daily and payable monthly to the
Adviser, and is computed as a percentage of the Portfolio's net assets as of the
close of business each day at the annual rate of .60%. The Adviser has agreed to
waive that portion of the advisory fee and to assume any necessary expenses to
limit total operating expenses of the Portfolio to 1.00% (net of expenses
offset) of average net assets on an annual basis.

(3) PURCHASES AND SALES OF SECURITIES

For the six months ended June 30, 1997 purchases and sales of investment
securities, other than short-term securities, were $6,237,713 and $3,017,417,
respectively.

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

Aggregate gross unrealized appreciation for securities in which there is an
excess of value over tax cost is $69,498, aggregate gross unrealized
depreciation for securities in which there is an excess of tax cost over value
is $28,671 and net unrealized appreciation for Federal income tax purposes is
$40,827. Federal income tax cost basis of portfolio securities is $6,500,122 at
June 30, 1997.

(5) AFFILIATED TRANSACTION

On July 22, 1997, PIMCO Advisors L.P. ("PIMCO Advisors"), a registered
investment adviser with approximately $119 billion in assets under management
through various subsidiaries and its affiliate Thomson Advisory Group Inc.
("TAG") signed an Amended and Restated Merger Agreement with Oppenheimer Group,
Inc. ("OGI"), its subsidiary Oppenheimer Financial Corp. ("Opfin") and certain
related parties pursuant to which PIMCO Advisors and TAG and its successor, will
acquire the one-third managing general partner interest in Oppenheimer Capital,
its 1.0% general partner interest in OpCap Advisors, and its 1.0% general
partner interest in Oppenheimer Capital L.P. (the "Transaction"). If the
Transaction is consummated, it will involve a change in control of Oppenheimer
Capital and its subsidiary OpCap Advisors which will constitute an assignment
and termination of the Investment Advisory Agreement with the Trust. At a
meeting held on February 28, 1997, the Trustees, including all independent
Trustees, approved and determined to submit to shareholders for approval, a new
Investment Advisory Agreement with OpCap Advisors, substantially upon the same
terms and conditions as the existing Investment Advisory Agreement. Proxy
material will be sent to shareholders concerning the new Investment Advisory
Agreement.
<PAGE> 59

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

FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD:

<TABLE>
<CAPTION>
JANUARY 3, 1995(1)
SIX MONTHS ENDED YEAR ENDED TO
JUNE 30, 1997(7) DECEMBER 31, 1996 DECEMBER 31, 1995
----------------- ----------------- --------------------
<S> <C> <C> <C>
Net asset value, beginning of period.... $ 10.38 $ 10.62 $ 10.00
---------- ---------- ----------
Income from investment operations:
Net investment income................... 0.28 0.55 0.60
Net realized and unrealized gain (loss)
on investments........................ (0.05) (0.24) 0.68
---------- ---------- ----------
Total from investment operations...... 0.23 0.31 1.28
---------- ---------- ----------
Dividends and distributions to
shareholders:
Dividends to shareholders from net
investment income..................... (0.28) (0.55) (0.60)
Distributions to shareholders from net
realized gains........................ -- -- (0.06)
---------- ---------- ----------
Total dividends and distributions to
shareholders....................... (0.28) (0.55) (0.66)
---------- ---------- ----------
Net asset value, end of period.......... $ 10.33 $ 10.38 $ 10.62
========== ========== ==========
Total return (2)........................ 2.2% 3.0% 13.1%
========== ========== ==========
Net assets, end of period............... $ 6,647,927 $ 3,421,998 $1,442,458
---------- ---------- ----------
Ratio of net operating expenses to
average net assets (5,6).............. 1.01%(3,4) 0.96% 0.75%(3)
---------- ---------- ----------
Ratio of net investment income to
average net assets (6)................ 5.48%(3,4) 5.27% 5.75%(3)
---------- ---------- ----------
Portfolio turnover rate................. 60% 31% 65%
---------- ---------- ----------
</TABLE>

- ---------------
(1) Commencement of operations.

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

(3) Annualized.

(4) Average net assets for the six months ended June 30, 1997 were $5,038,930.

(5) For fiscal periods ending after September 1, 1995, the ratios are calculated
to include expenses offset by earnings credits from a custodian bank (See
note 1G in Notes to Financial Statements).

(6) During the periods noted above, the Adviser waived a portion or all of its
fees and assumed a portion of the Portfolio's operating expenses. If such
waivers and assumptions had not been in effect, the ratios of net operating
expenses to average net assets and the ratios of net investment income to
average net assets would have been 1.53% and 4.96%, annualized,
respectively, for the six months ended June 30, 1997, and 2.34% and 3.87%,
respectively, for the year ended December 31, 1996 and 4.73% and 1.77%,
annualized, respectively, for the period January 3, 1995 (commencement of
operations) to December 31, 1995.

(7) Unaudited.
<PAGE> 60

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

JUNE 30, 1997
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ---------- -----------
<C> <S> <C>
U.S. GOVERNMENT AGENCY NOTES - 7.6%
Federal Home Loan Bank,
$ 265,000 5.40%, 7/24/97..................................................... $ 264,086
1,580,000 5.41%, 8/14/97..................................................... 1,569,553
-----------
Total U.S. Government Agency Notes (cost - $1,833,639)............. $ 1,833,639
-----------

<CAPTION>
SHARES
<C> <S> <C>
COMMON STOCKS - 91.4%
AUSTRALIA - 1.0%
ENERGY - .5%
37,328 Novus Petroleum Ltd. .............................................. $ 128,358
-----------
PAPER PRODUCTS - .5%
17,137 WMC Ltd. .......................................................... 108,143
-----------
Total Australian Common Stocks..................................... 236,501
-----------
BERMUDA - 4.1%
INSURANCE - 4.1%
12,800 ACE Ltd. .......................................................... 945,600
800 EXEL Ltd. ......................................................... 42,200
-----------
Total Bermuda Common Stocks........................................ 987,800
-----------
BRAZIL - 1.9%
BANKING - .5%
5,000 Bompreco Supermecados Norde* GDR................................... 121,500
-----------
PAPER PRODUCTS - .3%
3,100 Aracruz Celulose SA ADR............................................ 63,163
-----------
TELECOMMUNICATIONS - .8%
3,200 Ericsson Telecomunicacoes SA....................................... 190,237
-----------
TEXTILES/APPAREL - .3%
210 Compahnia de Tecidos Norte de Minas-Conteminas..................... 81,928
-----------
Total Brazilian Common Stocks...................................... 456,828
-----------
CANADA - 2.8%
ELECTRONICS - .4%
11,940 CAE, Inc. ......................................................... 94,676
-----------
ENERGY - 1.4%
3,000 PanCanadian Petroleum Ltd. ........................................ 63,000
3,750 Precision Drilling Corp.*.......................................... 181,125
3,600 Suncor, Inc. ...................................................... 95,413
-----------
339,538
-----------
</TABLE>
<PAGE> 61

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

JUNE 30, 1997

<TABLE>
<CAPTION>
SHARES VALUE
-----------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
CANADA (CONTINUED)
PRINTING/PUBLISHING - .3%
3,250 Thomson Corp. ..................................................... $ 75,664
-----------
SECURITY/INVESTIGATION - .4%
4,500 Unican Security Systems Ltd. ...................................... 90,590
-----------
TRANSPORTATION - .3%
2,875 Canadian Pacific Ltd. ............................................. 81,298
-----------
Total Canadian Common Stocks....................................... 681,766
-----------
CHILE - .3%
CONGLOMERATES - .3%
3,300 Quinenco SA* ADR................................................... 61,050
-----------
CZECHOSLOVAKIA - .4%
TELECOMMUNICATIONS - .2%
550 SPT Telekom AS*.................................................... 57,679
-----------
MISCELLANEOUS FINANCIAL SERVICES - .2%
2,000 CKD Praha Holding AS*.............................................. 54,409
-----------
Total Czechoslovakian Common Stocks................................ 112,088
-----------
FINLAND - 1.6%
DRUGS & MEDICAL PRODUCTS - .2%
8,200 Oy Tamro AB........................................................ 56,848
-----------
TELECOMMUNICATIONS - 1.4%
4,500 Oy Nokia AB........................................................ 335,372
-----------
Total Finnish Common Stocks........................................ 392,220
-----------
FRANCE - 4.3%
ELECTRONICS - .9%
500 Le Carbone Lorraine................................................ 121,667
1,559 Schneider SA....................................................... 82,981
-----------
204,648
-----------
ENERGY - .9%
2,116 Total SA........................................................... 213,879
-----------
INSURANCE - .7%
2,800 AXA*............................................................... 174,145
-----------
MANUFACTURING - .4%
1,556 Michelin (CGDE).................................................... 93,439
-----------
POWER/UTILITIES - .6%
2,264 Compagnie Generale des Eaux........................................ 145,725
-----------
</TABLE>
<PAGE> 62

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

JUNE 30, 1997

<TABLE>
<CAPTION>
SHARES VALUE
-----------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
FRANCE (CONTINUED)
TECHNOLOGY - .8%
2,400 SGS-Thomson Microelectronics N.V.*................................. $ 189,494
-----------
Total French Common Stocks......................................... 1,021,330
-----------
GERMANY - 4.6%
CHEMICALS - .8%
1,300 SGL Carbon AG...................................................... 177,994
-----------
COMPUTER SERVICES - 1.4%
1,650 SAP AG............................................................. 331,116
-----------
CONSUMER PRODUCTS - .6%
1,300 Adidas AG.......................................................... 143,856
-----------
DRUGS & MEDICAL PRODUCTS - .3%
1,150 Gehe AG............................................................ 78,465
-----------
INSURANCE - .6%
175 Koelnische Rueckversicherungs AG................................... 149,504
-----------
RETAIL - .9%
2,000 Metro AG........................................................... 219,139
-----------
Total German Common Stocks......................................... 1,100,074
-----------
HONG KONG - .6%
BANKING - .4%
216,000 Manhattan Credit Card Co., Ltd. ................................... 98,279
-----------
MISCELLANEOUS FINANCIAL SERVICES - .2%
70,000 Noble Group Ltd.*.................................................. 54,600
-----------
Total Hong Kong Common Stocks...................................... 152,879
-----------
HUNGARY - 1.1%
CONGLOMERATES - .3%
6,650 Benpres Holdings Corp.* GDR........................................ 49,044
3,800 Benpres Holdings Corp.* GDR Reg. S................................. 26,600
-----------
75,644
-----------
DRUGS & MEDICAL PRODUCTS - .8%
500 Gedeon Richter Ltd., GDR........................................... 45,750
500 Gedeon Richter Ltd., GDR Reg. S.................................... 45,688
1,050 Gedeon Richter Ltd., GDS........................................... 96,600
-----------
188,038
-----------
Total Hungarian Common Stocks...................................... 263,682
-----------
INDONESIA - .2%
WHOLESALE - .2%
34,000 PT Tigaraksa Satria................................................ 41,591
-----------
</TABLE>
<PAGE> 63

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

JUNE 30, 1997

<TABLE>
<CAPTION>
SHARES VALUE
-----------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
ITALY - .6%
TELECOMMUNICATIONS - .6%
32,000 Telecom Italia S.p.A. ............................................. $ 63,357
49,000 Telecom Italia Mobile S.p.A.*...................................... 87,646
-----------
151,003
-----------
JAPAN - 14.3%
AUTOMOTIVE - 1.3%
15,000 Calsonic Corp. .................................................... 95,271
5,000 Honda Motor Co., Ltd. ............................................. 150,497
5,000 Murakami Corp. .................................................... 54,528
-----------
300,296
-----------
BANKING - 1.2%
20 Aeon Credit Service Co., Ltd. ..................................... 1,300
22,000 Daiwa Bank Ltd. ................................................... 104,223
48,000 Yasuda Trust & Banking............................................. 183,423
-----------
288,946
-----------
BUILDING & CONSTRUCTION - .3%
3,000 Sho-Bond Corp. .................................................... 78,259
-----------
CHEMICALS - 2.1%
25,000 Dainippon Ink & Chemicals, Inc. ................................... 107,747
9,000 Sekisui Chemical Co. .............................................. 91,084
6,000 Shin-Etsu Chemical Co. ............................................ 159,135
53,000 Showa Denko K.K. .................................................. 138,719
-----------
496,685
-----------
COMPUTER SERVICES - .6%
4,000 Konami Co., Ltd. .................................................. 149,363
-----------
CONGLOMERATES - .3%
4,000 Inaba Denkisangyo Co. ............................................. 71,541
-----------
CONSUMER PRODUCTS - 1.0%
7,000 Canon, Inc. ....................................................... 190,543
10,000 Minolta Co. Ltd. .................................................. 62,642
-----------
253,185
-----------
DRUGS & MEDICAL PRODUCTS - .8%
7,000 Takeda Chemical Industries......................................... 196,650
-----------
ELECTRICAL ENGINEERING - .0%
100 Kinden Corp. ...................................................... 1,413
-----------
</TABLE>
<PAGE> 64

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

JUNE 30, 1997

<TABLE>
<CAPTION>
SHARES VALUE
-----------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
JAPAN (CONTINUED)
ELECTRONICS - 3.1%
10,000 Fujitsu Ltd. ...................................................... $ 138,719
1,000 Kyocera Corp.*..................................................... 79,393
8,000 Mitsubishi Electric Corp. ......................................... 44,739
3,000 Omron Corp. ....................................................... 63,602
1,000 Rohm Co. .......................................................... 102,949
8,000 Sodick Co. ........................................................ 64,980
3,000 Sony Corp. ........................................................ 261,473
-----------
755,855
-----------
INSURANCE - .2%
9,000 Fuji Fire & Marine Insurance....................................... 39,182
-----------
METALS & MINING - .3%
5,000 Toho Titanium*..................................................... 76,339
-----------
MISCELLANEOUS FINANCIAL SERVICES - 1.4%
50 Credit Saison Co., Ltd. ........................................... 1,221
2,000 Orix Corp. ........................................................ 148,142
600 Shohkoh Fund....................................................... 181,644
-----------
331,007
-----------
POWER/UTILITIES - .3%
5,000 Kyushu Electric Power.............................................. 85,936
-----------
RETAIL - 1.0%
1,200 Circle K Co. Ltd. ................................................. 68,889
6,000 Mycal Corp. ....................................................... 86,372
1,000 Ryohin Keikaku Co. Ltd. ........................................... 78,869
-----------
234,130
-----------
TOBACCO/BEVERAGES/FOOD PRODUCTS - .4%
6,000 Mikuni Coca-Cola Bottling.......................................... 88,990
-----------
Total Japanese Common Stocks....................................... 3,447,777
-----------
LICHTENSTEIN - .3%
BANKING - .3%
130 Liechtenstein Global Trust AG...................................... 79,692
-----------
MEXICO - 1.2%
BUILDING/CONSTRUCTION - .6%
26,000 Corporacion GEO, S.A. de CV*....................................... 149,833
-----------
CONGLOMERATES - .6%
20,000 Alfa S.A. de CV*................................................... 136,395
-----------
Total Mexican Common Stocks........................................ 286,228
-----------
</TABLE>
<PAGE> 65

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

JUNE 30, 1997

<TABLE>
<CAPTION>
SHARES VALUE
-----------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
NETHERLANDS - 1.6%
IMPORTING/EXPORTING - .3%
1,516 Hagemeyer NV....................................................... $ 78,314
-----------
MISCELLANEOUS FINANCIAL SERVICES - .8%
3,886 ING Groep NV....................................................... 179,165
-----------
PRINTING/PUBLISHING - .5%
5,800 Ver Ned Uitgevers.................................................. 128,239
-----------
Total Netherlands Common Stocks.................................... 385,718
-----------
NEW ZEALAND - .6%
BUILDING & CONSTRUCTION - .4%
28,344 Fletcher Challenge Ltd. ........................................... 84,132
-----------
FOOD SERVICES - .2%
160,392 AFFCO Holdings Ltd. ............................................... 55,563
-----------
Total New Zealand Common Stocks.................................... 139,695
-----------
NORWAY - .7%
ENERGY - .7%
8,400 Saga Petroleum ASA................................................. 159,308
-----------
POLAND - .1%
BANKING - .1%
2,500 Bank Handlowy W. Warszawie*........................................ 28,830
-----------
SINGAPORE - .4%
PRINTING/PUBLISHING - .4%
5,000 Singapore Press Holdings Ltd. ..................................... 100,720
-----------
SOUTH KOREA - .8%
ENERGY - .2%
1,060 Seoul City Gas Co. Ltd. ........................................... 48,225
-----------
TELECOMMUNICATIONS - .3%
6,000 SK Telecom Co. Ltd.* ADR........................................... 60,375
-----------
TOBACCO/BEVERAGES/FOOD PRODUCTS - .3%
490 Lotte Confectionery Co. ........................................... 76,149
-----------
Total South Korean Common Stocks................................... 184,749
-----------
SPAIN - 1.0%
ENERGY - .5%
2,900 Repsol SA.......................................................... 122,613
-----------
MANUFACTURING - .5%
2,600 Vidrala SA......................................................... 113,281
-----------
Total Spanish Common Stocks........................................ 235,894
-----------
</TABLE>
<PAGE> 66

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

JUNE 30, 1997

<TABLE>
<CAPTION>
SHARES VALUE
-----------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
SWEDEN - 3.9%
BANKING - .4%
2,700 Nordbanken AB*..................................................... $ 91,099
-----------
DRUGS & MEDICAL PRODUCTS - .6%
8,000 ASTRA AB........................................................... 148,924
-----------
ELECTRONICS - .5%
1,600 Electrolux AB...................................................... 115,416
-----------
MACHINERY/ENGINEERING - 1.8%
13,300 ABB AB............................................................. 186,549
6,900 Atlas Copco AB..................................................... 180,182
4,500 Kalmar Industries AB............................................... 77,080
-----------
443,811
-----------
PAPER PRODUCTS - .6%
5,100 AssiDoman AB....................................................... 145,046
-----------
Total Swedish Common Stocks........................................ 944,296
-----------
SWITZERLAND - 3.7%
BANKING - .7%
1,350 CS Holding AG...................................................... 173,373
-----------
BUILDING & CONSTRUCTION - .7%
170 Holderbank Financiere Glaris AG.................................... 160,568
-----------
DRUGS & MEDICAL PRODUCTS - 2.0%
145 Ares-Serono Group.................................................. 210,051
170 Novartis AG*....................................................... 271,767
-----------
481,818
-----------
MANUFACTURING - .3%
25 Sig Schweizerische Industrie - Gesellschaft Holding AG............. 75,771
-----------
Total Swiss Common Stocks.......................................... 891,530
-----------
THAILAND - .3%
WHOLESALE - .3%
27,000 Siam Makro Public Co., Ltd. ....................................... 74,001
-----------
UNITED KINGDOM - 5.6%
COMPUTER SERVICES - .5%
26,000 Amstrad PLC........................................................ 122,966
-----------
DRUGS & MEDICAL PRODUCTS - 1.0%
12,450 SmithKline Beecham PLC............................................. 229,203
-----------
ELECTRONICS - .6%
8,900 Siebe PLC.......................................................... 150,880
-----------
</TABLE>
<PAGE> 67

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

JUNE 30, 1997

<TABLE>
<CAPTION>
SHARES VALUE
-----------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
UNITED KINGDOM (CONTINUED)
MANUFACTURING - 1.1%
48,000 Bridon PLC......................................................... $ 107,112
40,263 LucasVarity PLC*................................................... 139,464
-----------
245,576
-----------
METALS & MINING - .6%
20,000 Antofagasta Holdings PLC........................................... 153,208
-----------
MISCELLANEOUS FINANCIAL SERVICES - .8%
18,317 Lloyds TSB Group PLC............................................... 188,210
-----------
RETAIL - 1.0%
13,116 Dixon Group PLC.................................................... 103,313
24,600 Safeway, Inc. ..................................................... 142,358
-----------
245,671
-----------
Total United Kingdom Common Stocks................................. 1,336,714
-----------
UNITED STATES - 33.4%
AEROSPACE/DEFENSE - 4.4%
3,000 Lockheed Martin Corp. ............................................. 310,687
11,000 McDonnell Douglas Corp. ........................................... 753,500
-----------
1,064,187
-----------
BANKING - 5.7%
4,000 Citicorp........................................................... 482,250
3,300 Wells Fargo & Co. ................................................. 889,350
-----------
1,371,600
-----------
CHEMICALS - 4.6%
11,000 du Pont (E.I.) de Nemours & Co. ................................... 691,625
4,000 Hercules, Inc. .................................................... 191,500
5,000 Monsanto Co. ...................................................... 215,313
-----------
1,098,438
-----------
CONGLOMERATES - 1.9%
10,000 Tenneco, Inc. ..................................................... 451,875
-----------
CONSUMER PRODUCTS - 1.8%
13,000 Mattel, Inc. ...................................................... 440,375
-----------
DRUGS & MEDICAL PRODUCTS - 1.7%
8,000 Becton, Dickinson & Co. ........................................... 405,000
-----------
FOOD SERVICES - 2.8%
14,000 McDonald's Corp. .................................................. 676,375
-----------
MACHINERY/ENGINEERING - 1.3%
3,000 Caterpillar, Inc. ................................................. 322,125
-----------
</TABLE>
<PAGE> 68

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

JUNE 30, 1997

<TABLE>
<CAPTION>
SHARES VALUE
- ---------- -----------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
UNITED STATES (CONTINUED)
MISCELLANEOUS FINANCIAL SERVICES - 3.3%
23,000 Federal Home Loan Mortgage Corp. .................................. $ 790,625
-----------
PAPER PRODUCTS - .7%
3,000 Champion International, Inc. ...................................... 165,750
-----------
RAILROADS - 1.2%
4,000 Union Pacific Corp. ............................................... 282,000
-----------
TECHNOLOGY - 1.1%
1,000 Intel Corp. ....................................................... 141,812
4,000 National Semiconductor Corp.*...................................... 122,500
-----------
264,312
-----------
TELECOMMUNICATIONS - 2.9%
1,300 Loral Space & Communications Ltd.*................................. 19,500
45,000 Tele-Communications, Inc. (Class A)*............................... 669,375
-----------
688,875
-----------

Total United States Common Stocks.................................. 8,021,537
-----------

Total Common Stocks (cost - $17,962,852)........................... $21,975,501
-----------

Total Investments (cost - $19,796,491)............................. 99.0%
$23,809,140
Other Assets in Excess of Liabilities....................... 1.0 239,169
------ ----------

Total Net Assets............................................ 100.0% $24,048,309
====== ===========
</TABLE>

- ---------------
* Non-income producing security.

See accompanying notes to financial statements.
<PAGE> 69

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

JUNE 30, 1997

<TABLE>
<S> <C>
ASSETS
Investments, at value (cost - $19,796,491)..................................... $23,809,140
Cash........................................................................... 141,921
Foreign currencies (cost - $53,177)............................................ 52,033
Receivable from fund shares sold............................................... 42,582
Dividends receivable........................................................... 17,395
Foreign withholding taxes reclaimable.......................................... 9,131
Other assets................................................................... 889
-----------
Total Assets................................................................. 24,073,091
-----------

LIABILITIES
Payable for fund shares redeemed............................................... 3,151
Investment advisory fees payable............................................... 1,584
Foreign withholding taxes payable.............................................. 1,229
Other payables and accrued expenses............................................ 18,818
-----------
Total Liabilities............................................................ 24,782
-----------

Total Net Assets............................................................. $24,048,309
===========

COMPOSITION OF NET ASSETS
Par value ($.01 per share)..................................................... $ 15,943
Paid-in-capital in excess of par............................................... 19,851,655
Accumulated undistributed net investment income................................ 100,186
Accumulated undistributed net realized gain on investments..................... 88,939
Accumulated net realized loss on foreign currency transactions................. (19,919)
Net unrealized appreciation on investments and translation of other assets and
liabilities denominated in foreign currencies................................ 4,011,505
-----------

Total Net Assets............................................................. $24,048,309
===========

Fund shares outstanding........................................................ 1,594,305
-----------

Net asset value per share...................................................... $ 15.08
-----------
</TABLE>

See accompanying notes to financial statements.
<PAGE> 70

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

FOR THE SIX MONTHS ENDED JUNE 30, 1997

<TABLE>
<S> <C>
INVESTMENT INCOME
Dividends (net of foreign withholding taxes of $14,770)...................... $ 161,489
Interest..................................................................... 63,629
----------
Total investment income................................................... 225,118
----------

OPERATING EXPENSES
Investment advisory fees (note 2A)........................................... 79,334
Custodian fees (note 1H)..................................................... 29,897
Audit fees................................................................... 5,150
Transfer and dividend disbursing agent fees.................................. 4,614
Reports and notices to shareholders.......................................... 1,737
Legal fees................................................................... 1,080
Miscellaneous................................................................ 1,383
----------
Total operating expenses.................................................. 123,195
Less: Investment advisory fees waived (note 2A)........................... (2,537)
Less: Expenses offset (note 1H)........................................... (685)
----------
Net operating expenses............................................... 119,973
----------
Net investment income................................................ 105,145
----------

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY
TRANSACTIONS - NET

Net realized gain on investments............................................. 92,782

Net realized loss on foreign currency transactions........................... (19,919)

Net change in unrealized appreciation (depreciation) on investments and
translation of other assets and liabilities denominated in foreign
currencies................................................................ 2,621,255
----------

Net realized gain and change in unrealized appreciation (depreciation) on
investments and translation of other assets and liabilities denominated
in foreign currencies.................................................... 2,694,118
----------

Net increase in net assets resulting from operations........................... $2,799,263
==========
</TABLE>

See accompanying notes to financial statements.
<PAGE> 71

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

<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1997(1) DECEMBER 31, 1996
---------------- --------------------
<S> <C> <C>
OPERATIONS
Net investment income....................................... $ 105,145 $ 73,364
Net realized gain on investments............................ 92,782 145,915
Net realized loss on foreign currency transactions.......... (19,919) (67,648)
Net change in unrealized appreciation (depreciation) on
investments and translation of other assets and
liabilities denominated in foreign currencies............. 2,621,255 1,247,855
----------- -----------
Net increase in net assets resulting from operations... 2,799,263 1,399,486
----------- -----------

DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Net investment income....................................... (7,066) (60,776)
Net realized gains on investments........................... (3,843) (89,998)
----------- -----------
Total dividends and distributions to shareholders...... (10,909) (150,774)
----------- -----------

FUND SHARE TRANSACTIONS
Net proceeds from sales..................................... 4,606,509 16,110,547
Reinvestment of dividends and distributions................. 10,909 150,774
Cost of shares redeemed..................................... (329,951) (3,428,866)
----------- -----------
Net increase in net assets from fund share
transactions......................................... 4,287,467 12,832,455
----------- -----------

Total increase in net assets...................... 7,075,821 14,081,167

NET ASSETS
Beginning of period......................................... 16,972,488 2,891,321
----------- -----------
End of period (including undistributed net investment income
of $100,186 and $2,107, respectively)..................... $ 24,048,309 $ 16,972,488
=========== ===========

SHARES ISSUED AND REDEEMED
Issued...................................................... 334,220 1,304,431
Issued in reinvestment of dividends and distributions....... 804 11,415
Redeemed.................................................... (23,321) (282,190)
----------- -----------
Net increase........................................... 311,703 1,033,656
=========== ===========
</TABLE>

- ---------------
(1) Unaudited.

See accompanying notes to financial statements.
<PAGE> 72

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

JUNE 30, 1997

(1) ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

OCC Accumulation Trust (the "Trust") was organized May 12, 1994 as a
Massachusetts business trust and is registered under the Investment Company Act
of 1940, as amended, as a diversified, open-end management investment company.
The Trust is authorized to issue an unlimited number of six classes of shares of
beneficial interest at $.01 par value. The Trust is comprised of six portfolios:
the Equity Portfolio, the Small Cap Portfolio, the Global Equity Portfolio (the
"Portfolio"), the Managed 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 Trust is an investment vehicle for variable annuity and variable
life insurance contracts of various life insurance companies, and qualified
pension and retirement plans. 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) 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
<PAGE> 73

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

JUNE 30, 1997

(D) FOREIGN CURRENCY TRANSLATION (CONTINUED)
(1) ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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.

(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

(G) USE OF ESTIMATES

(H) CUSTODY OFFSETS

(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% on the first $400 million,
.75% on the next $400 million and .70% thereafter. The Adviser has voluntarily
agreed to waive that portion of the advisory fee necessary to limit total
operating expenses of the Portfolio to 1.25% (net of expenses offset) of average
net assets on an annual basis.

(B) Total brokerage commissions paid by the Portfolio for the six months ended
June 30, 1997 amounted to $21,497, of which Oppenheimer & Co., Inc., an
affiliate of the Adviser, received $880.
<PAGE> 74

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

JUNE 30, 1997

(3) PURCHASES AND SALES OF INVESTMENTS

For the six months ended June 30, 1997, purchases and sales of investment
securities, other than short-term securities, were $6,796,997 and $2,508,482,
respectively.

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

Aggregate gross unrealized appreciation for securities in which there is an
excess of value over tax cost is $4,307,655, aggregate gross unrealized
depreciation for securities in which there is an excess of tax cost over value
is $295,006 and net unrealized appreciation for Federal income tax purposes is
$4,012,649. Federal income tax cost basis of portfolio securities is $19,796,491
at June 30, 1997.

(5) AFFILIATED TRANSACTION

OCC ACCUMULATION TRUST
GLOBAL EQUITY PORTFOLIO
FINANCIAL HIGHLIGHTS

FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD:

<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED MARCH 1, 1995(1) TO
JUNE 30, 1997(7) DECEMBER 31, 1996 DECEMBER 31, 1995
---------------- ----------------- --------------------
<S> <C> <C> <C>
Net asset value, beginning of
period............................. $ 13.23 $ 11.61 $ 10.00
----------- ----------- ----------
Income from investment operations:
Net investment income................ 0.07 0.04 0.05
Net realized and unrealized gain on
investments........................ 1.79 1.70 1.83
----------- ----------- ----------
Total from investment operations... 1.86 1.74 1.88
----------- ----------- ----------
Dividends and distributions to
shareholders:
Dividends to shareholders from net
investment income.................. (0.01) (0.05) (0.03)
Distributions to shareholders from
net realized gains................. (0.00) (0.07) (0.24)
----------- ----------- ----------
Total dividends and distributions
to shareholders................. (0.01) (0.12) (0.27)
----------- ----------- ----------
Net asset value, end of period....... $ 15.08 $ 13.23 $ 11.61
=========== =========== ==========
Total return (2)..................... 14.1% 15.0% 18.9%
=========== =========== ==========
Net assets, end of period............ $ 24,048,309 $16,972,488 $2,891,321
----------- ----------- ----------
Ratio of net operating expenses to
average net assets (5,6)........... 1.22%(3,4) 1.42% 1.25%(3)
----------- ----------- ----------
Ratio of net investment income to
average net assets (6)............. 1.06%(3,4) 0.81% 1.02%(3)
----------- ----------- ----------
Portfolio turnover rate.............. 14% 40% 67%
----------- ----------- ----------
Average commission rate.............. $ 0.0228 $ 0.0254 --
----------- ----------- ----------
</TABLE>

- ---------------
(1) Commencement of operations.

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

(3) Annualized.

(4) Average net assets for the six months ended June 30, 1997 were $19,997,903.

(5) For fiscal periods ending after September 1, 1995, the ratios are calculated
to include expenses offset by earnings credits from a custodian bank (See
note 1H in Notes to Financial Statements).

(6) During the periods noted above, the Adviser waived a portion or all of its
fees and assumed a portion of the Portfolio's operating expenses. If such
waivers and assumptions had not been in effect, the ratios of net operating
expenses to average net assets and the ratios of net investment income to
average net assets would have been 1.24% and 1.03%, annualized,
respectively, for the six months ended June 30, 1997, 1.83% and 0.22%,
respectively, for the year ended December 31, 1996 and 3.94% and (1.67%),
annualized, respectively, for the period March 1, 1995 (commencement of
operations) to December 31, 1995.

(7) Unaudited.