<PAGE>
OCC ACCUMULATION TRUST
o GLOBAL EQUITY PORTFOLIO
SEMI-ANNUAL REPORT
JUNE 30, 1999
MANAGED BY
[LOGO]
<PAGE>
OCC ACCUMULATION TRUST
MANAGED BY
[LOGO]
REPORT FOR THE SIX MONTHS ENDED JUNE 30, 1999
The first half of 1999 was a period of generally higher stock prices, with
the market advancing 12.4% as measured by the Standard & Poor's 500 index ("S&P
500"). Within that general uptrend, however, there were several crosscurrents.
In the first quarter, the gains of the S&P 500 continued to be driven by a
limited number of technology and large cap growth issues, as had been true
throughout 1998 and 1997. In the second quarter, by contrast, market leadership
broadened to include undervalued stocks with strong business fundamentals of the
type owned in our portfolios. Value stocks include those judged to be trading at
market prices well below the inherent value of the business, while growth stocks
include those believed to have excellent long-term earnings growth prospects. In
addition, the stocks of small companies, which had trailed the performance of
large cap issues for an extended period, sprang back to life in the second
quarter, advancing sharply.
Periods of outperformance by growth or value, or by large cap or small cap,
are normal. Like a pendulum, when the market reaches one extreme or the other,
absent some unusual factor it typically swings back. We believe the market is
now coming back toward our value style, which should benefit the equity
portfolios in the OCC Accumulation Trust.
As the third quarter begins, a central issue facing investors is whether
the U.S. economy is likely to overheat, causing interest rates to rise further.
The debate surrounding this issue has resulted from warnings by Federal Reserve
Chairman Alan Greenspan in mid-June that the recent growth rate of the U.S.
economy is "unsustainable" and that the reservoir of available workers is drying
up. In late June, in a preemptive move to keep the economy in check, the Federal
Reserve (the "Fed") raised its target short-term interest rate by one-quarter
percentage point, the first increase in more than two years.
The Fed's action is consistent with our expectation that the three
one-quarter point rate easings of 1998 are likely to require reversal during
1999. The original easings were made in response to global problems that are now
on the mend; they were not required to stimulate the U.S. economy. Our current
expectation is that the Fed will continue to retract the 1998 easings in order
to maintain economic balance. That behavior should be positive for our
investment style and central to the performance of the U.S. equity market as a
whole.
Our investment philosophy is characterized by:
1. Long-term perspective: We focus on individual companies and try to
understand where their businesses are going over the next several years, not on
where the stock market is heading in the next quarter.
2. Emphasis on cash flow: We buy businesses which generate cash that they
can use to compound investors' capital throughout an economic cycle.
3. Disciplined approach to valuation: We want to buy successful companies
that are growing. However, unlike more aggressive investors, we are reluctant to
pay a large premium for that growth. We believe that overpaying adds to risk and
makes it more difficult to achieve an investment profit.
<PAGE>
OCC ACCUMULATION TRUST
GLOBAL EQUITY PORTFOLIO
The Global Equity Portfolio continued its strong performance in the first
half of 1999, exceeding its benchmarks. The Portfolio's achieved a total return
of 13.4% compared with a return of 8.5% for the Morgan Stanley World Index
("World Index") in U.S. dollars and an average total return of 11.3% for the
global funds in Lipper's Variable Insurance Products Performance Analysis
Service Report. The Portfolio's performance ranked 12th among the 56 funds in
the Lipper global category.
This strong performance included a favorable second quarter, when the
Portfolio delivered a total return of 8.7%, exceeding both the 4.8% return of
the World Index and an average total return of 8.5% for the funds in the Lipper
global category.
The Portfolio invests in undervalued companies with what we consider to be
superior business characteristics, including strong competitive positions, high
cash flow and positive earnings outlooks. The objective of our value-based
approach is to capitalize on investment opportunities worldwide and deliver
excellent long-term investment results while controlling risk.
For the 12 months ended June 30, 1999, the Portfolio's total return of
10.7% compared with 15.7% for the World Index and an average of 12.1% for the
funds in the Lipper global classification. This 12-month performance was 28th
among the 53 funds in the category. The Portfolio continues to deliver favorable
returns over longer periods. For the three years ended June 30, 1999, its
average total return of 16.1% compared with an average annual total return of
15.3% for the funds in the Lipper global category and an average annual return
of 18.3% for the World Index. This three-year performance ranked 12th among the
34 funds in the Lipper category. From its inception on March 1, 1995 through
June 30, 1999, the Portfolio provided an average annual return of 17.4%,
compared with 19.2% 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.
The Portfolio is diversified not only globally, but also by industry and
company. At June 30, 1999, net assets were allocated 54.4% to the common stocks
of companies based outside the United States, 44.2% to the common stocks of
companies in the U.S., and 1.4% to cash and equivalents. Regardless of where
they are located, most of the companies in which the Portfolio invests are
global in scope, selling their products and services worldwide.
The Portfolio's top five country allocations, excluding the United States,
were Japan, representing 13.6% of the Portfolio's net assets as of June 30,
1999; the United Kingdom, 8.5% of net assets; France, 7.5% of net assets;
Germany, 4.5% of net assets; and Sweden, 3.2% of net assets.
We began increasing our investments in Japan in the autumn of 1998, a move
that paid off when the Japanese stock market rallied strongly in the first half
of 1999. The Portfolio owns several Japanese companies at the forefront of
restructuring, such as electronics giant Sony and consumer goods manufacturer
Kao. Evidence of a radical change in Japanese management thinking continues to
mount, providing investment opportunities in many companies which have long held
the potential for higher profits but have lacked the aggressive management
commitment to achieve them. New positions established in Japan in the first half
of 1999 include Toyo Information Systems, a diversified information service
provider, and Family Mart, a retailing chain.
Investment returns in Europe during the first half of 1999 were mixed, due
in part to the weakness of the Euro, which hindered investment results in U.S.
dollars. In addition, common stocks of European financial companies performed
poorly in the second quarter. Although the Portfolio's European financial
holdings were substantially reduced early in the second quarter, the remaining
bank stocks did not escape damage. Bank Austria and Munich-based Hypo
Vereinsbank were among the worst performers in the Portfolio despite their low
valuations and their ability to benefit from a rising interest rate environment.
The Portfolio's five largest non-U.S. equity holdings at June 30, 1999 were
XL Capital, a strongly capitalized specialty insurance company headquartered in
Bermuda, representing 3.1% of the Portfolio's net assets; News Corp., an
Australian-based global media and entertainment company, 2.5% of net assets;
Takefuji, a Japanese consumer finance company, 1.6% of net assets; Great
Universal Stores, a British-based retailer, 1.6% of net assets; and Bayerische
Hypo Vereinsbank, a German bank, 1.5% of net assets.
The Portfolio's U.S. holdings consist of a diverse group of quality
companies that we believe to be undervalued, such as Wells Fargo (banking),
Citigroup (diversified global financial services company), Computer
<PAGE>
Associates International (computer software), Boeing (aircraft) and Du Pont
(diversified technology and industrial company). Each of these companies
continue to improve its business performance and focus on the creation of
shareholder value. For instance, Citigroup's earnings have increased strongly
year to date, and we anticipate earnings growth at a compound annual rate of
approximately 15% during the next five years. Computer Associates earns high
returns on shareholders' equity and has achieved consistently strong growth in
revenue and operating income. Du Pont is making solid progress in its strategy
to become faster growing and more profitable by reducing costs, divesting
underperforming and cyclical businesses, and increasing its participation in
pharmaceuticals and other life sciences.
The Portfolio's five largest U.S. equity holdings at June 30, 1999 were
Freddie Mac, the second largest insurer of home mortgages in the United States,
representing 5.0% of the Portfolio's net assets; Wells Fargo, a financial
conglomerate comprising one of the larger banks in the Midwest and West,
together with national mortgage and consumer finance companies, 4.6% of net
assets; Citigroup, a leading global banking, insurance and other financial
services company, 4.4% of net assets; Computer Associates International, which
designs and markets computer software, 3.7% of net assets; and McDonald's, a
premier fast-food company with growing global markets, 2.7% of net assets.
Major industry positions were: financial services, representing 13.2% of
the Portfolio's net assets; banking 11.9% of net assets; technology, 8.5% of net
assets; chemicals, 5.7% of net assets; and telecommunications, 5.4% of net
assets.
Through in-depth global research, we continue to identify great companies
with strong, sustainable cash flows; high competitive barriers; and rational
managements with proven track records who are dedicated to creating shareholder
value. By investing in these companies, we seek to preserve capital and generate
excellent long-term results for the Portfolio's shareholders.
<PAGE>
OCC ACCUMULATION TRUST
GLOBAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS
JUNE 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ------------ -------------
<S> <C> <C>
U.S. GOVERNMENT AGENCY NOTES -- 1.3%
$519,000 Federal Home Loan Bank, 4.60%, 7/1/99 (cost--$519,000).............................. $519,000
-------------
<CAPTION>
SHARES
- -------------
<S> <C> <C>
COMMON STOCKS -- 98.6%
AUSTRALIA -- 2.5%
MEDIA/BROADCASTING -- 2.5%
30,000 News Corp. Ltd.+.................................................................... 946,875
-------------
AUSTRIA -- 0.8%
BANKING -- 0.8%
6,200 Bank Austria AG..................................................................... 325,955
-------------
BERMUDA -- 3.1%
INSURANCE -- 3.1%
20,897 XL Capital Ltd...................................................................... 1,180,681
-------------
BRAZIL -- 1.8%
AEROSPACE/DEFENSE -- 0.6%
132,000 Empresa Brasileira de Aeronautica SA+............................................... 223,665
-------------
CHEMICALS -- 0.5%
12,800 Petroleo Brasileiro SA ADR+......................................................... 197,095
-------------
PAPER PRODUCTS -- 0.0%
210,000 Empresa Nacional de Celulosas SA+................................................... 179
-------------
TELECOMMUNICATIONS -- 0.7%
6,100,000 Telecomunicacoes Brasileiras SA..................................................... 289,410
-------------
Total Brazilian Common Stocks....................................................... 710,349
-------------
CANADA -- 1.0%
TRANSPORTATION -- 1.0%
17,000 Canadian Pacific Ltd................................................................ 404,075
-------------
DENMARK -- 0.9%
FINANCIAL SERVICES -- 0.9%
5,000 Unidanmark A/S...................................................................... 332,769
-------------
FINLAND -- 0.8%
PAPER PRODUCTS -- 0.8%
28,000 Stora Enso Oyj...................................................................... 300,183
-------------
FRANCE -- 7.5%
BANKING -- 1.0%
4,800 Banque National de Paris............................................................ 399,805
-------------
ELECTRONICS -- 1.1%
3,000 Alcatel Alsthom SA.................................................................. 422,133
-------------
INSURANCE -- 1.0%
7,745 Scor SA............................................................................. 384,027
-------------
MEDIA/BROADCASTING -- 0.9%
1,300 Canal Plus.......................................................................... 364,643
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</TABLE>
<PAGE>
OCC ACCUMULATION TRUST
GLOBAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS
JUNE 30, 1999
(UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
SHARES VALUE
- ------------- -------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
FRANCE (CONTINUED)
OFFICE EQUIPMENT -- 1.2%
8,700 Societe BIC SA...................................................................... $ 458,734
-------------
RETAIL -- 1.2%
3,000 Carrefour SA........................................................................ 440,688
-------------
TOBACCO/BEVERAGES/FOOD PRODUCTS -- 1.1%
1,700 Groupe Danone....................................................................... 438,111
-------------
Total French Common Stocks.......................................................... 2,908,141
-------------
GERMANY -- 4.5%
BANKING -- 1.5%
9,150 Bayerische Hypo Vereinsbank AG...................................................... 594,234
-------------
CHEMICALS -- 1.0%
8,100 Hoechst AG.......................................................................... 366,560
-------------
MANUFACTURING -- 1.0%
5,200 Siemens AG.......................................................................... 400,959
-------------
POWER/UTILITY -- 1.0%
6,500 Veba Aktien AG...................................................................... 381,930
-------------
Total German Common Stocks.......................................................... 1,743,683
-------------
HONG KONG -- 0.4%
INDUSTRIAL MATERIALS -- 0.4%
70,000 Yue Yuen Industrial Holdings........................................................ 161,498
-------------
HUNGARY -- 0.5%
DRUGS & MEDICAL PRODUCTS -- 0.5%
4,000 Gedeon Richter Ltd., GDR Reg. S..................................................... 174,000
-------------
INDIA -- 1.5%
BANKING -- 0.6%
21,000 State Bank of India GDR Reg. S...................................................... 255,150
-------------
TELECOMMUNICATIONS -- 0.9%
34,000 Mahanagar Telephone Nigam Ltd....................................................... 333,200
-------------
Total Indian Common Stocks.......................................................... 588,350
-------------
ISRAEL -- 1.3%
DRUGS & MEDICAL PRODUCTS -- 1.3%
10,600 Teva Pharmaceutical Industries Ltd. ADR............................................. 519,400
-------------
ITALY -- 0.9%
TELECOMMUNICATIONS -- 0.9%
16,000 Telecom Italia SpA++................................................................ 350,613
-------------
JAPAN -- 13.6%
BANKING -- 1.1%
63,300 Nikko Securities Co., Ltd........................................................... 408,675
-------------
COMPUTER SERVICES -- 0.5%
6,000 Toyo Information Systems Co., Ltd................................................... 197,404
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</TABLE>
<PAGE>
OCC ACCUMULATION TRUST
GLOBAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS
JUNE 30, 1999
(UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
SHARES VALUE
- ------------- -------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
JAPAN (CONTINUED)
CONSUMER PRODUCTS -- 3.3%
6,000 Canon, Inc.......................................................................... $ 172,604
20,000 Kao Corp............................................................................ 562,123
5,000 Sony Corp........................................................................... 539,390
-------------
1,274,117
-------------
ELECTRONICS -- 1.8%
11,000 Fujitsu Ltd......................................................................... 221,419
3,000 Rohm Co............................................................................. 469,951
-------------
691,370
-------------
ENTERTAINMENT -- 1.3%
3,500 Nintendo Co. Ltd.................................................................... 492,147
-------------
FINANCIAL SERVICES -- 2.3%
2,300 Aiful Corp.......................................................................... 281,772
6,000 Takefuji Corp....................................................................... 620,485
-------------
902,257
-------------
HOUSING -- 0.5%
4,000 FamilyMart Co., Ltd................................................................. 183,516
-------------
TECHNOLOGY -- 1.4%
9,000 Canon Sales Co., Inc................................................................ 141,432
4,000 Secom Co............................................................................ 416,632
-------------
558,064
-------------
TOBACCO/BEVERAGES/FOOD PRODUCTS -- 1.4%
13,000 Ajinomoto Co., Inc.................................................................. 148,301
19,000 Mikuni Coca-Cola Bottling Co........................................................ 386,377
-------------
534,678
-------------
Total Japanese Common Stocks........................................................ 5,242,228
-------------
NORWAY -- 0.6%
ENERGY -- 0.6%
20,000 Stolt Comex Seaway SA............................................................... 217,500
-------------
SINGAPORE -- 0.1%
PRINTING/PUBLISHING -- 0.1%
1,377 Singapore Press Holdings Ltd........................................................ 23,462
-------------
SPAIN -- 0.9%
BANKING -- 0.9%
4,700 Banco Popular Espanol SA............................................................ 337,938
-------------
SWEDEN -- 3.2%
BANKING -- 1.3%
42,000 Skandinaviska Enskilda Banken....................................................... 489,811
-------------
ELECTRONICS -- 0.8%
16,000 Electrolux AB....................................................................... 335,493
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</TABLE>
<PAGE>
OCC ACCUMULATION TRUST
GLOBAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS
JUNE 30, 1999
(UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
SHARES VALUE
- ------------- -------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
SWEDEN (CONTINUED)
TELECOMMUNICATIONS -- 1.1%
12,900 Telefonaktiebolaget LM Ericsson..................................................... $ 414,094
-------------
Total Swedish Common Stocks......................................................... 1,239,398
-------------
UNITED KINGDOM -- 8.5%
CONSUMER PRODUCTS -- 0.9%
33,000 Reckitt & Colman plc................................................................ 344,608
-------------
DRUGS & MEDICAL PRODUCTS -- 1.1%
145,000 Smith & Nephew plc.................................................................. 438,828
112 SmithKline Beecham plc.............................................................. 1,457
-------------
440,285
-------------
ELECTRONICS -- 1.0%
80,000 Invensys plc*....................................................................... 378,300
-------------
ENTERTAINMENT -- 1.3%
61,000 EMI Group plc....................................................................... 491,814
-------------
FOOD SERVICES -- 0.9%
34,161 Diageo plc.......................................................................... 362,037
-------------
INDUSTRIAL MATERIALS -- 1.0%
55,600 Williams plc........................................................................ 367,210
-------------
PRINTING/PUBLISHING -- 0.7%
43,000 Reed International plc.............................................................. 286,026
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RETAIL -- 1.6%
55,000 Great Universal Stores plc.......................................................... 613,358
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Total United Kingdom Common Stocks.................................................. 3,283,638
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UNITED STATES -- 44.2%
AEROSPACE/DEFENSE -- 2.5%
22,150 Boeing Co........................................................................... 978,753
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BANKING -- 4.6%
41,400 Wells Fargo & Co.................................................................... 1,769,850
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CHEMICALS -- 4.2%
14,000 du Pont (E.I.) de Nemours & Co...................................................... 956,375
17,300 Monsanto Co. ....................................................................... 682,269
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1,638,644
-------------
COMPUTER SERVICES -- 0.3%
9,000 Cadence Designs Systems, Inc. ...................................................... 114,750
-------------
CONGLOMERATES -- 1.7%
7,700 Minnesota Mining & Manufacturing Co. ............................................... 669,419
-------------
CONSUMER PRODUCTS -- 1.1%
15,700 Mattel, Inc......................................................................... 415,069
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</TABLE>
<PAGE>
OCC ACCUMULATION TRUST
GLOBAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS
JUNE 30, 1999
(UNAUDITED) (CONCLUDED)
<TABLE>
<CAPTION>
SHARES VALUE
- ------------- -------------
<S> <C> <C>
COMMON STOCKS (CONCLUDED)
UNITED STATES (CONTINUED)
DRUGS & MEDICAL PRODUCTS -- 2.2%
14,600 American Home Products Corp......................................................... $ 839,500
-------------
FINANCIAL SERVICES -- 10.0%
36,000 Citigroup, Inc...................................................................... 1,710,000
33,000 Federal Home Loan Mortgage Corp..................................................... 1,914,000
4,700 Household International............................................................. 222,662
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3,846,662
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FOOD SERVICES -- 2.7%
25,000 McDonald's Corp..................................................................... 1,032,813
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MACHINERY/ENGINEERING -- 2.3%
14,900 Caterpillar, Inc.................................................................... 894,000
-------------
MANUFACTURING -- 1.1%
6,900 Alcoa, Inc.......................................................................... 426,938
-------------
MEDIA/BROADCASTING -- 1.1%
7,700 Chancellor Media Corp............................................................... 424,463
-------------
TECHNOLOGY -- 7.1%
31,300 Compaq Computer Corp................................................................ 741,419
26,000 Computer Associates International, Inc.............................................. 1,430,000
9,500 Intel Corp.......................................................................... 565,250
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2,736,669
-------------
TELECOMMUNICATIONS -- 1.8%
8,000 MCI Worldcom. Inc................................................................... 688,500
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TRANSPORTATION -- 1.5%
8,800 UAL Corp............................................................................ 572,000
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Total United States Common Stocks................................................ 17,048,030
-------------
Total Common Stocks (cost -- $33,182,379)........................................... 38,038,766
-------------
</TABLE>
<TABLE>
<S> <C> <C> <C>
Total Investments (cost -- $33,701,379)................................... 99.9% $38,557,766
Other Assets Less Liabilities............................................. 0.1 16,081
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Total Net Assets.......................................................... 100.0% $38,573,847
----- -----------
----- -----------
</TABLE>
- ------------------
* Non-income producing security.
+ Preferred Stock
++ With Rights
ADR -- American Depositary Receipt
GDR -- Global Depositary Receipt
See accompanying notes to financial statements.
<PAGE>
OCC ACCUMULATION TRUST
GLOBAL EQUITY PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1999
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS
Investments, at value (cost -- $33,701,379)........................................................ $ 38,557,766
Cash (including foreign currency of $90,223 with a cost of $90,574)................................ 97,904
Dividends receivable............................................................................... 60,569
Receiveable from shares of beneficial interest sold................................................ 17,525
Other assets....................................................................................... 1,451
-------------
Total Assets..................................................................................... 38,735,215
-------------
LIABILITIES
Payable for investments purchased.................................................................. 133,561
Payable for shares of beneficial interest redeemed................................................. 6,384
Investment advisory fee payable.................................................................... 5,759
Net unrealized depreciation on foreign currency contracts.......................................... 830
Other payables and accrued expenses................................................................ 14,834
-------------
Total Liabilities................................................................................ 161,368
-------------
Total Net Assets................................................................................. $ 38,573,847
-------------
-------------
COMPOSITION OF NET ASSETS
Par value ($.01 per share)......................................................................... $ 22,105
Paid-in-capital in excess of par................................................................... 29,550,846
Accumulated net investment income.................................................................. 35,073
Accumulated net realized gain on investments....................................................... 4,110,618
Net unrealized appreciation on investments and translation of other assets and
liabilities denominated in foreign currency...................................................... 4,855,205
-------------
Total Net Assets................................................................................. $ 38,573,847
-------------
-------------
Shares outstanding................................................................................. 2,210,538
-------------
Net asset value per share.......................................................................... $17.45
-------------
-------------
</TABLE>
See accompanying notes to financial statements.
<PAGE>
OCC ACCUMULATION TRUST
GLOBAL EQUITY PORTFOLIO
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1999
(UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME
Dividends (net of foreign withholding taxes of $32,506)........................................... $ 315,655
Interest.......................................................................................... 35,620
------------
Total investment income........................................................................ 351,275
------------
OPERATING EXPENSES
Investment advisory fees.......................................................................... 143,245
Custodian fees.................................................................................... 36,952
Audit fees........................................................................................ 5,359
Trustees' fees and expenses....................................................................... 3,764
Transfer and dividend disbursing agent fees....................................................... 2,789
Reports to shareholders........................................................................... 948
Legal fees........................................................................................ 700
Miscellaneous..................................................................................... 780
------------
Total operating expenses....................................................................... 194,537
Less: expense offset........................................................................... (284)
------------
Net operating expenses....................................................................... 194,253
------------
Net investment income........................................................................ 157,022
------------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS
Net realized gain on investments.................................................................. 4,241,742
Net realized gain on foreign currency transactions................................................ 42,937
Net change in unrealized appreciation/depreciation on investments and translation of other assets
and liabilities denominated in foreign currency................................................ 132,988
------------
Net realized and unrealized gain on investments and translation of
other assets and liabilities denominated in foreign currency.............................. 4,417,667
------------
Net increase in net assets resulting from operations................................................ $ 4,574,689
------------
------------
</TABLE>
See accompanying notes to financial statements.
<PAGE>
OCC ACCUMULATION TRUST
GLOBAL EQUITY PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED
JUNE 30, 1999 (1) DECEMBER 31, 1998
----------------- -----------------
<S> <C> <C>
OPERATIONS
Net investment income..................................................... $ 157,022 $ 242,532
Net realized gain on investments.......................................... 4,241,742 1,274,387
Net realized gain on foreign currency transactions........................ 42,937 23,150
Net change in unrealized appreciation/depreciation on investments
and translation of other assets and liabilities denominated in
foreign currency........................................................ 132,988 1,899,363
----------- -----------
Net increase in net assets resulting from operations.................... 4,574,689 3,439,432
----------- -----------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
From net investment income................................................ -- (382,416)
From net realized gains................................................... (87,815) (1,316,653)
----------- -----------
Total dividends and distributions to shareholders....................... (87,815) (1,699,069)
----------- -----------
SHARE TRANSACTIONS
Net proceeds from the sales of shares..................................... 4,315,377 11,034,344
Reinvestment of dividends and distributions............................... 87,815 1,699,069
Cost of shares redeemed................................................... (5,093,411) (5,570,212)
----------- -----------
Net increase (decrease) in net assets from share transactions........... (690,219) 7,163,201
----------- -----------
Total increase in net assets......................................... 3,796,655 8,903,564
NET ASSETS
Beginning of period....................................................... 34,777,192 25,873,628
----------- -----------
End of period (including undistributed net investment income and
distribution in excess of net investment income of $35,073 and
($121,949), respectively)............................................... $38,573,847 $34,777,192
----------- -----------
----------- -----------
SHARES ISSUED AND REDEEMED
Issued.................................................................... 261,578 692,242
Issued in reinvestment of dividends and distributions..................... 5,755 110,115
Redeemed.................................................................. (311,147) (354,531)
----------- -----------
Net increase (decrease)................................................. (43,814) 447,826
----------- -----------
----------- -----------
</TABLE>
- ------------------
(1) Unaudited
See accompanying notes to financial statements.
<PAGE>
OCC ACCUMULATION TRUST
GLOBAL EQUITY PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1999
(UNAUDITED)
(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 Mid Cap Portfolio. OpCap Advisors (the "Adviser"), a subsidiary of
Oppenheimer Capital, serves as the Trust's investment adviser. The accompanying
financial statements and notes thereto are those of the Portfolio. 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 U.S. or foreign
securities exchange or traded in the over-the-counter National Market System are
valued each business day at the last reported sale price; if there are no such
reported sales, the securities are valued at their last quoted bid price. Other
securities traded over-the-counter and not part of the National Market System
are valued at the last quoted bid price. Investment debt securities (other than
short-term obligations) are valued each business day by an independent pricing
service (approved by the Board of Trustees) 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.
(C) INVESTMENT TRANSACTIONS AND OTHER INCOME
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, except certain dividends from foreign securities where the
ex-dividend date may have passed, are recorded as soon as the Portfolio is
informed of 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) 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 investments and other assets
and liabilities stated in foreign currency are translated at the exchange rate
at the end of the period; and (2) purchases, sales, income and expenses are
translated at the rate of exchange prevailing on the respective dates of such
transactions. The resultant exchange gains and losses are included in the
portfolio's Statement of Operations. Since the net assets of the Portfolio are
presented at the foreign exchange rates and market prices at the close of the
period, the Portfolio does not isolate the portion of the results of operations
arising as a result of changes in the exchange rates from fluctuations arising
from changes in the market price of securities.
<PAGE>
OCC ACCUMULATION TRUST
GLOBAL EQUITY PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1999
(UNAUDITED) (CONCLUDED)
(1) ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES--(CONCLUDED)
(E) DIVIDENDS AND DISTRIBUTIONS
Dividends and distributions to shareholders from net investment income and net
realized capital gains, if any, are declared and paid at least annually.
The Portfolio records dividends and distributions to its shareholders on the
ex-dividend date. The amount of dividends and distributions 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 as a
tax return of capital.
(F) ALLOCATION OF EXPENSES
Expenses specifically identifiable to a particular portfolio are borne by that
portfolio. Other expenses are allocated to each portfolio of the Trust based on
its net assets in relation to the total net assets of all applicable portfolios
of the Trust or another reasonable basis.
(G) 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.
(H) EXPENSES OFFSET
The Portfolio benefits from an expense offset arrangement with its custodian
bank whereby uninvested cash balances earn credits that reduce custodian fees.
Had these cash balances been invested in income producing securities, they would
have generated income for the Portfolio.
(I) TRUSTEES' RETIREMENT PLAN
On October 19, 1998, the Trust adopted a retirement plan that provides for
payments upon retirement to independent trustees based on the average annual
compensation paid to them during their five highest paid years of service. An
independent trustee must serve for a minimum of seven years (or such lesser
period as may be approved by the board) to become eligible to receive benefits.
For the six months ended June 30, 1999, expenses accrued in connection with the
retirement plan were $3,764.
(2) INVESTMENT ADVISORY FEE
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 is contractually
obligated to waive that portion of the advisory fee and to assume any necessary
expenses in order to limit total operating expenses of the Portfolio to 1.25% of
average net assets (net of any expense offset) on an annual basis.
(3) PURCHASES AND SALES OF INVESTMENTS
For the six months ended June 30, 1999, purchases and sales of investments,
other than short-term securities, were $20,689,262 and $19,788,045,
respectively.
(4) UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS
Aggregate gross unrealized appreciation for securities in which there was an
excess of value over cost was $6,008,254, aggregate gross unrealized
depreciation for securities in which there was an excess of cost over value was
$1,151,867, resulting in net unrealized appreciation of $4,856,387.
<PAGE>
OCC ACCUMULATION TRUST
GLOBAL EQUITY PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD:
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
SIX MONTHS ENDED ------------------------------- MARCH 1, 1995 (1) TO
JUNE 30, 1999 (7) 1998 1997 1996 DECEMBER 31, 1995
----------------- ------- ------- ------- --------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of
period.............................. $ 15.43 $ 14.32 $ 13.23 $ 11.61 $10.00
-------- ------- ------- ------- ------
Income from investment operations:
Net investment income............... 0.11 0.12 0.06 0.04 0.05
Net realized and unrealized gain on
investments....................... 1.95 1.78 1.79 1.70 1.83
-------- ------- ------- ------- ------
Total income from investment
operations...................... 2.06 1.90 1.85 1.74 1.88
-------- ------- ------- ------- ------
Dividends and distributions to
shareholders:
From net investment income.......... -- (0.18) (0.04) (0.05) (0.03)
In excess of net investment income.. -- -- (0.03) -- --
From net realized gains............. (0.04) (0.61) (0.69) (0.07) (0.24)
-------- ------- ------- ------- ------
Total dividends and distributions
to shareholders................. (0.04) (0.79) (0.76) (0.12) (0.27)
-------- ------- ------- ------- ------
Net asset value, end of period........ $ 17.45 $ 15.43 $ 14.32 $ 13.23 $11.61
-------- ------- ------- ------- ------
-------- ------- ------- ------- ------
Total return (2)...................... 13.4% 13.3% 14.0% 15.0% 18.9%
-------- ------- ------- ------- ------
-------- ------- ------- ------- ------
Net assets, end of period (000's)..... $ 38,574 $34,777 $25,874 $16,972 $2,891
-------- ------- ------- ------- ------
Ratio of net operating expenses to
average net assets (5).............. 1.08%(3,4) 1.13% 1.19%(6) 1.42%(6) 1.25%(3,6)
-------- ------- ------- ------- ------
Ratio of net investment income to
average net assets (5).............. 0.88%(3,4) 0.79% 0.45%(6) 0.81%(6) 1.02%(3,6)
-------- ------- ------- ------- ------
Portfolio turnover.................... 57% 55% 53% 40% 67%
-------- ------- ------- ------- ------
</TABLE>
- ------------------
(1) Commencement of operations.
(2) Assumes reinvestment of all dividends and distributions. Total return for a
period of less than one year is not annualized.
(3) Annualized
(4) Average net assets for the six months ended June 30, 1999 were $36,108,077.
(5) Inclusive of expenses offset by earnings credits from a custodian bank (See
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
(loss) to average net assets would have been 1.20% and 0.44%, respectively,
for the year ended December 31, 1997, and 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
<PAGE>
OCC ACCUMULATION TRUST
ONE WORLD FINANCIAL CENTER
NEW YORK, NY 10281
TRUSTEES AND PRINCIPAL OFFICERS
<TABLE>
<S> <C>
Joseph M. LaMotta........................................ Trustee, President & Chairman
Paul Y. Clinton.......................................... Trustee
Thomas W. Courtney....................................... Trustee
Lacy B. Herrmann......................................... Trustee
George Loft.............................................. Trustee
Bernard H. Garil......................................... Vice President
Mark F. Degenhart........................................ Vice President and Portfolio Manager
John C. Giusio, Jr....................................... Vice President
Richard J. Glasebrook, II................................ Vice President and Portfolio Manager
Colin Glinsman........................................... Vice President and Portfolio Manager
Louis Goldstein.......................................... Vice President and Portfolio Manager
Benjamin D. Gutstein..................................... Vice President and Portfolio Manager
Vikki Hanges............................................. Vice President and Portfolio Manager
Timothy J. McCormack..................................... Vice President and Portfolio Manager
Eileen P. Rominger....................................... Vice President and Portfolio Manager
Lawrence K. Becker....................................... Treasurer
Deborah Kaback........................................... Secretary
Brian S. Shlissel........................................ Assistant Treasurer
Maria Camacho............................................ Assistant Secretary
</TABLE>
INVESTMENT ADVISER
OpCap Advisors
One World Financial Center
New York, NY 10281
CUSTODIAN AND TRANSFER AGENT
State Street Bank and Trust Company
P.O. Box 1978
Boston, MA 02105
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, NY 10036
This report is authorized for distribution only
to shareholders and to others who have received
a copy of this Trust's prospectus.
