<PAGE>
OCC ACCUMULATION TRUST
O MID CAP 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
MID CAP PORTFOLIO
The Mid Cap Portfolio invests in companies with stock market
capitalizations--that is, the total market value of a company's common shares
outstanding--between $500 million and $5 billion at time of purchase. This
portfolio commenced operations on February 9, 1998 to broaden the range of
investment choices available to investors in the Trust.
In the first half of 1999, the Portfolio provided a total return of 4.7%,
compared with a return of 10.7% for the Wilshire Midcap 750 Index, ("Wilshire
750"), inclusive of dividends, and an average total return of 13.0% for the
funds in Lipper's Variable Insurance Products Performance Service Report mid cap
category. The Wilshire 750 is an unmanaged index of 750 mid-sized corporations
weighted by market capitalization. The Portfolio's performance was 65th among
the 77 funds in the Lipper category. We are disappointed with these results and
remain dedicated to generating excellent investment performance for the
Portfolio's shareholders.
The Portfolio owns a diverse group of high-quality mid cap stocks that we
believe to be "cheaper and better" than the market. As a group, the companies we
own generate higher returns on capital and equity than the average of the
companies in the broad mid cap indexes and have earnings growth rates that are
as great as, or greater than, the average of the companies in these indexes.
Although, they trade at lower average valuations than the indexes. We believe
the inherent value of the stocks owned by the Portfolio will be recognized by
the market in time and that, over a market cycle, our holdings will generate
strong performance with below-market risk.
In the 12 months ended June 30, 1999, the Portfolio was down 2.1%, while
the Wilshire 750 increased 6.6% and the average total return of the funds in the
Lipper mid cap category was 17.3%. This performance was 67th among the 71 funds
in the Lipper mid cap universe. To a large degree, our underperformance
reflected the fact that value stocks with strong business fundamentals of the
type owned by the Portfolio trailed the market indexes during the 12 months,
while growth stocks and highly valued technology issues rose sharply in price.
We want to own growing companies. However, we are reluctant to pay high
valuations, because doing so adds to risk and reduces future profit potential.
We are confident that value stocks in general, and the types of quality value
stocks owned by the Portfolio in particular, will return to favor and catch up
with the indexes over the long term. From its inception on February 9, 1998
through June 30, 1999, the Portfolio's total annual return of 2.2% compared with
11.5% for the Wilshire 750. Returns for the Portfolio take into account expenses
incurred by the Portfolio, but not other charges imposed by the Variable
Accounts.
The Portfolio is focused on long-term investment in undervalued quality
companies with high cash flow and favorable business prospects. New positions in
the first half of 1999 included AMFM (formerly Chancellor Media) and Lamar
Advertising.
AMFM is one of the cheapest stocks in the radio business. The industry is
growing rapidly because radio is a less expensive medium on which to advertise
than are newspapers or television, with a much more targeted audience, while the
recent consolidation of the industry makes it easier for advertisers to purchase
blocks of time. AMFM's valuation remains low due to the bad execution and
acquisition strategy of prior management. In mid-March, however, AMFM's leading
shareholders drove a complete change of top management to industry specialists
with strong operating records; an unwinding of conflicts of interest with its
largest shareholder; termination of purchases of noncore assets; and the sale of
noncore billboard assets to Lamar Advertising for $1.6 billion. We believe these
actions, as well as the company's use of strong cash flow to deleverage, should
drive improved financial performance and result in a higher price-earnings
ratio.
We initiated our position in Lamar, one of the largest billboard companies,
several weeks prior to its purchase of AMFM's billboard assets. This is a
win-win transaction for both companies. The dynamics and attractiveness of
billboard advertising are similar to radio, and also generate high cash flows.
Lamar is a better billboard operator than AMFM (for which this was a noncore
operation) and can also immediately cut large overlapping costs. AMFM will
continue to benefit also, since it will receive a 30% stake in Lamar as part of
the transaction.
At June 30, 1999, the Portfolio's net assets were invested 93.9% in common
stocks and 6.1% in cash and cash equivalents. This compared with 97.3% in common
stocks and 2.7% in cash and cash equivalents six months earlier. The Portfolio's
five largest holdings at June 30, 1999 were Air Express International, which
provides freight forwarding and logistics services to international shippers,
representing 4.9% of the Portfolio's
<PAGE>
net assets; Sabre Group Holdings, which operates an electronic travel
reservations system and provides information technology services, 4.6% of net
assets; Emmis Communications, which owns radio and television stations and
publishes magazines, 4.4% of net assets; AMFM (formerly Chancellor Media), a
leading radio broadcaster, 4.3% of net assets; and WPP Group (ADRs), one of the
world's leading advertising and specialty communications services firms, 4.1% of
net assets.
The Portfolio's top five industry positions at the end of June were:
electronics, representing 16.9% of the Portfolio's net assets; insurance, 16.1%
of net assets; media/broadcasting, 9.7% of net assets; advertising, 8.4% of net
assets; and real estate, 6.6% of net assets.
We remain dedicated to generating excellent investment results with below
market risk and believe the companies owned by the Portfolio--with their high
cash flow, which they can use to create shareholder value--should perform well
in the months ahead.
<PAGE>
OCC ACCUMULATION TRUST
MID CAP PORTFOLIO
SCHEDULE OF INVESTMENTS
JUNE 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ------------ ------------
<S> <C> <C>
U.S. GOVERNMENT AGENCY NOTES -- 4.7%
$ 150,000 Federal Home Loan Bank, 4.88%, 7/16/99............................................... $ 149,695
30,000 Federal National Mortgage Association, 5.03%, 7/13/99................................ 29,950
----------
Total U.S. Government Agency Notes (cost -- $179,645)................................ 179,645
----------
SHARES
----------
COMMON STOCKS -- 93.9%
ADVERTISING -- 8.4%
1,400 Lamar Advertising Co.*............................................................... 57,312
1,850 WPP Group plc ADR.................................................................... 158,638
2,350 Young & Rubicam, Inc................................................................. 106,778
----------
322,728
----------
COMPUTER SERVICES -- 5.7%
3,500 Cadence Design Systems, Inc.*........................................................ 44,625
2,550 Sabre Group Holdings, Inc.*.......................................................... 175,312
----------
219,937
----------
DRUGS & MEDICAL PRODUCTS -- 3.2%
2,550 Teva Pharmaceutical Industries Ltd. ADR.............................................. 124,950
----------
ELECTRONICS -- 16.9%
4,300 Allegheny Teledyne, Inc. ............................................................ 97,287
4,800 Arrow Electronics, Inc.* ............................................................ 91,200
2,800 Avnet, Inc. ......................................................................... 130,200
1,800 Flextronics International Ltd.*...................................................... 99,900
2,200 Jabil Circuit, Inc.*................................................................. 99,275
3,000 Oak Industries, Inc.* ............................................................... 131,063
----------
648,925
----------
ENERGY -- 3.2%
1,650 Anadarko Petroleum Corp. ............................................................ 60,740
2,300 Applied Power, Inc. ................................................................. 62,819
----------
123,559
----------
FINANCIAL SERVICES -- 4.1%
3,650 Countrywide Credit Industries, Inc. ................................................. 156,038
----------
HOTELS -- 0.9%
13,800 Homestead Village, Inc.*............................................................. 33,637
----------
INSURANCE -- 16.1%
3,700 ACE Ltd. ............................................................................ 104,525
3,028 Conseco, Inc. ....................................................................... 92,165
3,500 Everest Reinsurance Holdings, Inc. .................................................. 114,187
2,200 PartnerRe Ltd. ...................................................................... 82,225
1,050 Protective Life Corp. ............................................................... 34,650
1,700 RenaissanceRe Holdings Ltd. ......................................................... 62,900
2,300 XL Capital Ltd. ..................................................................... 129,950
----------
620,602
----------
</TABLE>
<PAGE>
OCC ACCUMULATION TRUST
MID CAP PORTFOLIO
SCHEDULE OF INVESTMENTS
JUNE 30, 1999
(UNAUDITED) (CONCLUDED)
<TABLE>
<CAPTION>
SHARES VALUE
---------- ----------
<S> <C> <C>
COMMON STOCKS (CONCLUDED)
MACHINERY/ENGINEERING -- 3.1%
3,350 Dover Corp. ......................................................................... $ 117,250
----------
MANUFACTURING -- 3.2%
1,600 Carlisle Cos., Inc. ................................................................. 77,000
1,425 Crane Co. ........................................................................... 44,798
----------
121,798
----------
MEDIA/BROADCASTING -- 9.7%
1,400 Capstar Broadcasting Corp.*.......................................................... 38,325
3,000 Chancellor Media Corp.*.............................................................. 165,375
3,400 Emmis Communications Corp.*.......................................................... 167,875
----------
371,575
----------
PRINTING/PUBLISHING -- 1.4%
4,500 Hollinger, Inc. ..................................................................... 53,438
----------
REAL ESTATE -- 6.6%
6,500 ProLogis Trust....................................................................... 131,625
8,300 Security Capital Group, Inc. (Class B)*.............................................. 120,869
----------
252,494
----------
TECHNOLOGY -- 5.0%
3,100 ED & G, Inc.......................................................................... 110,438
4,000 Gartner Group, Inc.* ................................................................ 82,000
----------
192,438
----------
TEXTILES/APPAREL -- 1.5%
3,500 Shaw Industries, Inc.* .............................................................. 57,750
----------
TRANSPORTATION -- 4.9%
7,500 Air Express International Corp. ..................................................... 190,313
----------
Total Common Stocks (cost -- $3,492,184)............................................. 3,607,432
<S> <C> <C>
Total Investments (cost -- $3,671,829)..................................... 98.6% $3,787,077
Other Assets Less Liabilities.............................................. 1.4 53,791
--------- ----------
Total Net Assets........................................................... 100.0% $3,840,868
========= ==========
</TABLE>
- ------------------
* Non-income producing security.
ADR -- American Depositary Receipt
See accompanying notes to financial statements.
<PAGE>
OCC ACCUMULATION TRUST
MID CAP PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1999
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS
Investments, at value (cost -- $3,671,829).......................................................... $ 3,787,077
Cash................................................................................................ 3,930
Receivable from investments sold.................................................................... 83,972
Dividends receivable................................................................................ 2,112
Other assets........................................................................................ 437
------------
Total Assets...................................................................................... 3,877,528
------------
LIABILITIES
Payable for investments purchased................................................................... 24,860
Payable for shares of beneficial interest redeemed.................................................. 147
Other payables and accrued expenses................................................................. 11,653
------------
Total Liabilities................................................................................. 36,660
------------
Total Net Assets.................................................................................. $ 3,840,868
============
COMPOSITION OF NET ASSETS
Par value ($.01 per share).......................................................................... $ 3,747
Paid-in-capital in excess of par.................................................................... 3,656,757
Accumulated net investment income................................................................... 5,104
Accumulated net realized gain on investments........................................................ 60,012
Net unrealized appreciation on investments.......................................................... 115,248
------------
Total Net Assets.................................................................................. $ 3,840,868
============
Shares outstanding.................................................................................. 374,657
------------
Net asset value per share........................................................................... $ 10.25
============
</TABLE>
See accompanying notes to financial statements.
<PAGE>
OCC ACCUMULATION TRUST
MID CAP PORTFOLIO
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1999
(UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME
Dividends (net of foreign withholding taxes $128)................................................... $ 14,080
Interest............................................................................................ 4,050
----------
Total investment income.......................................................................... 18,130
----------
OPERATING EXPENSES
Investment advisory fees............................................................................ 10,421
Custodian fees...................................................................................... 7,679
Audit fees.......................................................................................... 4,677
Transfer and dividend disbursing agent fees......................................................... 1,605
Trustees' fees and expenses......................................................................... 98
Reports to shareholders............................................................................. 48
Miscellaneous....................................................................................... 4,190
----------
Total operating expenses......................................................................... 28,718
Less: Investment advisory fees waived and expenses assumed by adviser............................ (14,831)
Expense offset............................................................................. (861)
----------
Net operating expenses......................................................................... 13,026
----------
Net investment income.......................................................................... 5,104
----------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain on investments.................................................................... 68,431
Net change in unrealized appreciation/depreciation on investments................................... 104,727
----------
Net realized and unrealized gain on investments................................................ 173,158
----------
Net increase in net assets resulting from operations.................................................. $ 178,262
==========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
OCC ACCUMULATION TRUST
MID CAP PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE PERIOD
SIX MONTHS ENDED FEBRUARY 9,
JUNE 30, 1998 (1)
1999 (2) TO DECEMBER 31, 1998
---------------- --------------------
<S> <C> <C>
OPERATIONS
Net investment income..................................................... $ 5,104 $ 9,196
Net realized gain (loss) on investments................................... 68,431 (8,419)
Net change in unrealized appreciation/depreciation on investments......... 104,727 10,521
---------- ----------
Net increase in net assets resulting from operations.................... 178,262 11,298
---------- ----------
DIVIDENDS TO SHAREHOLDERS
From net investment income................................................ -- (9,196)
---------- ----------
Total dividends to shareholders......................................... -- (9,196)
---------- ----------
SHARE TRANSACTIONS
Net proceeds from the sale of shares...................................... 2,334,019 2,061,371
Reinvestment of dividends................................................. -- 4,411
Cost of shares redeemed................................................... (556,437) (182,860)
---------- ----------
Net increase in net assets from share transactions...................... 1,777,582 1,882,922
---------- ----------
Total increase in net assets......................................... 1,955,844 1,885,024
NET ASSETS
Beginning of period....................................................... 1,885,024 --
---------- ----------
End of period (including undistributed net investment income of $5,104 and
$0, respectively)....................................................... $3,840,868 $1,885,024
========== ==========
SHARES ISSUED AND REDEEMED
Issued.................................................................... 240,265 211,535
Issued in reinvestment of dividends....................................... -- 451
Redeemed.................................................................. (58,109) (19,485)
---------- ----------
Net increase............................................................ 182,156 192,501
========== ==========
</TABLE>
- ------------------
(1) Commencement of operations.
(2) Unaudited
See accompanying notes to financial statements.
<PAGE>
OCC ACCUMULATION TRUST
MID CAP 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
Managed Portfolio, the U.S. Government Income Portfolio and the Mid Cap
Portfolio (the "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 national
securities exchange or traded in the over-the-counter National Market System are
valued each business day at the last reported sale price; if there are no such
reported sales, the securities are valued at their last quoted bid price. Other
securities traded over-the-counter and not part of the National Market System
are valued at the last quoted bid price. 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
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 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.
The Portfolio records dividends and distributions to its shareholders on the
ex-dividend date. The amount of dividends and distributions is 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
<PAGE>
OCC ACCUMULATION TRUST
MID CAP PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1999
(UNAUDITED) (CONCLUDED)
(1) ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONCLUDED)
for Federal income tax purposes, they are reported as dividends and/or
distributions of paid-in-capital or as a 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) EXPENSE OFFSET
The Portfolio benefits from an expense offset arrangement with its custodian
bank whereby uninvested cash balanaces earn credits that reduce custodian fees.
Had these cash balances been invested in income producing securities, they would
have generated income for the Portfolio.
(H) 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 $98.
(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 1.00% of
average net assets (net of any expense offset) on an annual basis.
(3) PURCHASES AND SALES OF SECURITIES
For the six months ended June 30, 1999, purchases and sales of investments,
other than short-term securities, were $2,627,169 and $1,027,827, respectively.
(4) UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS
Aggregate gross unrealized appreciation for securities in which there was an
excess of value over cost was $311,941, aggregate gross unrealized depreciation
for securities in which there was an excess of cost over value was $196,693,
resulting in net unrealized appreciation was $115,248.
<PAGE>
OCC ACCUMULATION TRUST
MID CAP PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD:
<TABLE>
<CAPTION>
SIX MONTHS ENDED FEBRUARY 9, 1998 (1)
JUNE 30, 1999 (7) TO DECEMBER 31, 1998
------------------- -----------------------
<S> <C> <C>
Net asset value, beginning of period.................................. $ 9.79 $ 10.00
----------- -----------
Income from investment operations:
Net investment income............................................... 0.01 0.05
Net realized and unrealized gain (loss) on investments.............. 0.45 (0.21)
----------- -----------
Total income (loss) from investment operations................... 0.46 (0.16)
----------- -----------
Dividends to shareholders:
From net investment income.......................................... -- (0.05)
----------- -----------
Total dividends to shareholders.................................. -- (0.05)
----------- -----------
Net asset value, end of period........................................ $ 10.25 $ 9.79
=========== ===========
Total return (2)...................................................... 4.7% (1.6%)
=========== ===========
Net assets, end of period (000's)..................................... $ 3,841 $ 1,885
----------- -----------
Ratio of net operating expenses to average net assets (3,5,6)......... 1.00% (4) 1.05%
----------- -----------
Ratio of net investment income to average net assets (3,5,6).......... 0.39% (4) 0.78%
----------- -----------
Portfolio turnover.................................................... 30% 38%
----------- -----------
</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 $2,626,769.
(5) Inclusive of expenses offset by earnings credits from custodian bank (See 1G
in Notes to Financial Statements).
(6) During the periods noted above, the Adviser waived its fee and assumed a
portion of the Portfolio's operating expenses. If such waivers and
assumptions had not been in effect, the ratio of net operating expenses to
average net assets and the ratio of net investment loss to average net
assets would have been 2.14% and (0.75)% (annualized), respectively, for the
six months ended June 30, 1999, and 4.28% and (2.46)% (annualized),
respectively, for the period February 9, 1998 (commencement of operations)
to December 31, 1998.
(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.
