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OCC ACCUMULATION TRUST
SCIENCE & TECHNOLOGY PORTFOLIO
SEMI-ANNUAL REPORT
JUNE 30, 2000
MANAGED BY
[Logo]
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OCC ACCUMULATION TRUST
SCIENCE & TECHNOLOGY PORTFOLIO
SCHEDULE OF INVESTMENTS
JUNE 30, 2000
(UNAUDITED)
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SHARES VALUE
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COMMON STOCK-86.2%
COMPUTERS-14.1%
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1,800 ASM Lithography Holding N.V.* ................................ $79,425
300 Brocade Communications Systems, Inc.*......................... 55,045
1,600 Dell Computer Corp.*.......................................... 78,900
400 EMC Corp. .................................................... 30,775
500 Redback Networks Inc.*........................................ 89,000
1,000 Sun Microsystems, Inc.*....................................... 90,938
300 VERITAS Software Corp.*....................................... 33,905
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457,988
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DRUGS & MEDICAL PRODUCTS-4.0%
200 Immunex Corp.*................................................ 9,888
900 MedImmune, Inc.* ............................................ 66,600
800 PE Corp-PE Biosystems Group................................... 52,700
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129,188
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ELECTRONICS-22.6%
1,200 Applied Materials, Inc.*...................................... 108,750
500 Applied Micro Circuits Corp.*................................. 49,375
1,000 Atmel Corp.*.................................................. 36,875
300 Broadcom Corp.*............................................... 65,681
900 Gemstar International Group Ltd.*............................. 55,308
500 General Motors Corp., (Class H)............................... 43,875
500 KLA-Tencor Corp.* ........................................... 29,281
1,400 Micron Technology, Inc. ...................................... 123,287
1,100 National Semiconductor Corp.*................................. 62,425
800 QLogic Corp.*................................................. 52,850
200 Research in Motion Ltd.*...................................... 9,050
400 Texas Instruments, Inc. ...................................... 27,475
800 Xilinx, Inc.*................................................. 66,050
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730,282
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FIBER OPTICS-7.9%
700 CIENA Corp.*.................................................. 116,681
300 E-Tek Dynamics, Inc*.......................................... 79,144
500 JDS Uniphase Corp.*........................................... 59,938
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255,763
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HEALTHCARE-0.4%
200 Gilead Sciences, Inc.*........................................ 14,225
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INTERNET-13.6%
400 Ariba, Inc.*.................................................. 39,219
1,100 BroadVision, Inc.*............................................ 55,894
800 Commerce One, Inc.*........................................... 36,300
800 Exodus Communications, Inc.*.................................. 36,850
600 i2 Technologies, Inc.*........................................ 62,559
500 Phone.com, Inc.*.............................................. 32,563
800 Portal Software, Inc.*........................................ 51,100
500 TIBCO Software Inc.*.......................................... 53,617
200 VeriSign, Inc.*............................................... 35,300
300 Yahoo! Inc.*.................................................. 37,162
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<PAGE>
OCC ACCUMULATION TRUST
SCIENCE & TECHNOLOGY PORTFOLIO
SCHEDULE OF INVESTMENTS
JUNE 30, 2000
(UNAUDITED) (CONCLUDED)
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SHARES
------ VALUE
COMMON STOCKS (CONCLUDED) --------------
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NETWORKING-10.7%
1,600 Cisco Systems, Inc.*.......................................... $101,700
600 Extreme Networks, Inc.*....................................... 63,300
600 Juniper Networks, Inc.*....................................... 87,337
1,100 Oracle Corp.*................................................. 92,469
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344,806
--------------
SOFTWARE-4.0%
800 Siebel Systems, Inc.*......................................... 130,850
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TELECOMMUNICATION-8.9%
2,000 Ericsson LM Tel Co., ADR ..................................... 40,000
600 Motorola, Inc. .............................................. 17,437
300 Next Level Communications, Inc.*.............................. 25,725
600 Nextel Communications, Inc.*.................................. 36,713
800 NEXTLINK Communications, Inc.*................................ 30,350
2,200 Nokia Corp., ADR ............................................ 109,862
300 RF Micro Devices, Inc.*....................................... 26,288
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286,375
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Total Common Stock (cost-$2,503,293) ........................ 2,790,041
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<CAPTION>
PRINCIPAL
AMOUNT
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REPURCHASE AGREEMENT-12.5%
$406,000 Repurchase Agreement with State Street Bank & Trust Co.,
dated 6/30/00, 5.85% due 7/3/00, proceeds: $406,198;
collateralized by Federal National Mortgage
Association, valued at $414,120; (amortized cost-$406,000)... 406,000
--------------
Total Investments (cost-$2,909,293) ................ 98.7% 3,196,041
Other assets less liabilities ...................... 1.3 41,364
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Net Assets .......................................... 100.0% $3,237,405
======= ==============
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* Non-income producing security.
ADR - American Depositary Receipt
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
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OCC ACCUMULATION TRUST
SCIENCE & TECHNOLOGY PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2000
(UNAUDITED)
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ASSETS:
Investments, at value (cost-$2,503,293)..................................... $2,790,041
Investment in repurchase agreement (amortized cost-$406,000)................ 406,000
Cash ....................................................................... 809
Receivable from investments sold............................................ 41,255
Dividends and interest receivable........................................... 124
--------------------
Total Assets............................................................ 3,238,229
--------------------
LIABILITIES:
Accrued expenses............................................................ 824
--------------------
Total Liabilities....................................................... 824
--------------------
Net Assets.............................................................. $3,237,405
====================
COMPOSITION OF NET ASSETS:
Beneficial interest shares of $0.01 par value (unlimited number authorized). $ 3,000
Paid-in-capital in excess of par............................................ 2,997,454
Undistributed net investment income......................................... 779
Net realized loss on investments............................................ (50,576)
Net unrealized appreciation of investments.................................. 286,748
--------------------
Net Assets.............................................................. $3,237,405
====================
Shares outstanding.......................................................... 300,045
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NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER SHARE.............. $10.79
======
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
<PAGE>
OCC ACCUMULATION TRUST
SCIENCE & TECHNOLOGY PORTFOLIO
STATEMENT OF OPERATIONS
FOR THE PERIOD APRIL 12, 2000* THROUGH JUNE 30, 2000
(UNAUDITED)
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INVESTMENT INCOME:
Interest ................................................................. $ 7,085
Dividends................................................................. 67
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Total investment income.................................................. 7,152
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EXPENSES:
Investment advisory fees.................................................. 5,098
Custodian fees ........................................................... 1,991
Miscellaneous............................................................. 64
-------------------
Total expenses......................................................... 7,153
Less: Investment advisory fees waived ................................. (132)
expense offset.............................................. (648)
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Net expenses............................................................ 6,373
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Net investment income.............................................. 779
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REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized loss on investments......................................... (50,576)
Net unrealized appreciation of investments............................... 286,748
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Net realized and unrealized gain on investments....................... 236,172
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NET INCREASE IN NET ASSETS RESULTING FROM INVESTMENT OPERATIONS............. $236,951
===================
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* Commencement of operations.
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
<PAGE>
OCC ACCUMULATION TRUST
SCIENCE & TECHNOLOGY PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
FOR THE PERIOD APRIL 12, 2000* THROUGH JUNE 30, 2000
(UNAUDITED)
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INVESTMENT OPERATIONS:
Net investment income..................................................... $ 779
Net realized loss on investments......................................... (50,576)
Net unrealized appreciation of investments................................ 286,748
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Net increase in net assets resulting from operations.................. 236,951
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SHARE TRANSACTIONS:
Net proceeds from the sale of shares...................................... 3,000,454
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Total increase in net assets................................. 3,237,405
NET ASSETS:
Beginning of period....................................................... -
-------------------
End of period ............................................................ $3,237,405
===================
SHARES ISSUED AND REDEEMED:
Issued................................................................... 300,045
Issued in reinvestment of dividends and distributions.................... -
Redeemed................................................................. -
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Net increase ........................................................ 300,045
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* Commencement of operations.
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
<PAGE>
OCC ACCUMULATION TRUST
SCIENCE & TECHNOLOGY PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING FOR THE PERIOD
APRIL 12, 2000* THROUGH JUNE 30, 2000
(UNAUDITED)
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Net asset value, beginning of period............................................ $10.00
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INCOME FROM INVESTMENT OPERATIONS:
Net investment income........................................................... 0.00
Net realized and unrealized gain on investments ................................ 0.79
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Total income from investment operations....................................... 0.79
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Net asset value, end of period.................................................. $10.79
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TOTAL RETURN (1)................................................................ 7.9%
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RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) .............................................. $3,237
Ratio of expenses to average net assets (2)(3)(4)............................... 1.10%
Ratio of net investment income to average net assets(3)(4) .................... 0.12%
Portfolio Turnover.............................................................. 4%
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* Commencement of operations.
(1) Total return for a period of less than one year is not annualized.
(2) Inclusive of expenses offset by earnings credits from custodian bank (See 1G
in Notes to Financial Statements).
(3) During the fiscal period indicated above, the Adviser waived a portion of
its fee and assumed a portion of the Portfolio's operating expenses. If
such waiver and assumption had not been in effect, the ratio of expenses
to average net assets and the ratio of net investment income to average
net assets would have been 1.12%(annualized) and (0.10%)(annualized),
respectively.
(4) Annualized
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OCC ACCUMULATION TRUST
SCIENCE & TECHNOLOGY PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2000
(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 shares of beneficial
interest at $0.01 par value. The Trust is comprised of: the Equity Portfolio,
the Small Cap Portfolio, the Global Equity Portfolio, the Managed Portfolio, the
U.S. Government Income Portfolio, the Mid Cap Portfolio, and the Science &
Technology Portfolio (the "Portfolio"). OpCap Advisors (the "Adviser"), a
wholly-owned subsidiary of Oppenheimer Capital, serves as the Trust's investment
adviser. The accompanying financial statement 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. 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.
REPURCHASE AGREEMENTS: The Portfolio's custodian takes possession of the
collateral pledged for investments in repurchase agreements. The underlying
collateral is valued daily on a mark-to-market basis to ensure that the value,
including accrued interest, is at least equal to the repurchase price. In the
event of default of the obligation to repurchase, the Portfolio has the right to
liquidate the collateral and apply the proceeds in satisfaction of the
obligations. Under certain circumstances, in the event of default or bankruptcy
by the other party to the agreement, realization and/or retention of the
collateral may be subject to legal proceedings.
(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.
<PAGE>
OCC ACCUMULATION TRUST
SCIENCE & TECHNOLOGY PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2000
(UNAUDITED) (CONTINUED)
(1) ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES-CONTINUED
(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 using the effective method.
(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 considered
either 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.
(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 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.
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OCC ACCUMULATION TRUST
SCIENCE & TECHNOLOGY PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2000
(UNAUDITED) (CONCLUDED)
(2) INVESTMENT ADVISORY AND SUB-ADVISORY FEES
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 0.80% on the first $400 million of net
assets, 0.75% on the next $400 million of net assets and 0.70% thereafter. The
Adviser has voluntary agreed to waive that portion of the advisory fee and to
assume any necessary expense to limit total operating expenses of the Portfolio
to 1.00% of average net assets (net of any expense offset) on an annual basis.
Pursuant to a sub-advisory agreement between the Adviser and PIMCO Equity
Advisors (the "Sub-Advisor"), a division of PIMCO Advisors L.P., the Adviser,
out of its investment advisory fee, pays the Sub-Adviser a monthly fee at the
annual rate of 0.40% for providing investment advisory services to the
Portfolio. For the period ended June 30, 2000, the Adviser paid the Sub-Adviser
$2,589, of which $965 was payable at June 30, 2000.
(3) INVESTMENTS IN SECURITIES
For federal income tax purposes the cost of securities owned at June 30, 2000
was $2,909,293. Accordingly, net unrealized appreciation of investments of
$286,748 was composed of gross appreciation of $454,804 for those investments
having an excess of value over cost and gross depreciation of $168,056
for those investments having an excess of cost over value.
For the period ended June 30, 2000, purchases and sales of investment
securities, other than short-term securities, aggregated $2,595,124 and $41,255,
respectively.
(4) ACQUISITION OF INVESTMENT ADVISER
On May 5, 2000 the general partners of PIMCO Advisors closed the transactions
contemplated by the Implementation and Merger Agreement dated as of October 31,
1999 ("Implementation Agreement"), as amended March 3, 2000, with Allianz of
America, Inc., Pacific Asset Management LLC, PIMCO Partners LLC, PIMCO Holding
LLC, PIMCO Partners, G.P., and other parties to the Implementation Agreement. As
a result of completing these transactions, PIMCO Advisors is now majority-owned
indirectly by Allianz AG, with subsidiaries of Pacific Life Insurance Company
retaining a significant minority interest. Allianz AG is a German based insurer.
Pacific Life Insurance Company is a Newport Beach, California based insurer. For
the Portfolio, the change of control as a result of the closing of the
Implementation Agreement resulted in the automatic termination of the current
investment advisory and sub-advisory agreements with OpCap Advisors and PIMCO
Equity Advisors, respectively. Prior to the closing of the Implementation
Agreement, the Board of Trustees approved new agreements with OpCap Advisors and
PIMCO Equity Advisors, respectively, to become effective upon the closing of the
Implementation Agreement.
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OCC ACCUMULATION TRUST
1345 AVENUE OF THE AMERICAS
NEW YORK, NY 10105
TRUSTEES AND PRINCIPAL OFFICERS
Susan A. Murphy President
Joseph M. LaMotta Trustee & Chairman
V. Lee Barnes Trustee
Paul Y. Clinton Trustee
Thomas W. Courtney Trustee
Lacy B. Herrmann Trustee
Theodore T. Mason Trustee
Steven Calabria Vice President
Bernard H. Garil Vice President
Jeffrey J. Hughes Vice President
Eric V. Retzlaff Vice President
Kenneth W. Corba Vice President and Portfolio Manager
Mark F. Degenhart Vice President and Portfolio Manager
Michael F. Gaffney Vice President and Portfolio Manager
John C. Giusio, Jr. Vice President and Portfolio Manager
Richard J. Glasebrook, II Vice President and Portfolio Manager
Colin Glinsman Vice President and Portfolio Manager
Louis Goldstein Vice President and Portfolio Manager
William Gross Vice President and Portfolio Manager
Benjamin D. Gutstein Vice President and Portfolio Manager
Vikki Hanges Vice President and Portfolio Manager
Elisa A. Mazen Vice President and Portfolio Manager
Dennis McKechnie Vice President and Portfolio Manager
Jeffrey D. Parker Vice President and Portfolio Manager
Brian S. Shlissel Treasurer
Elliot M. Weiss Secretary
INVESTMENT ADVISER
OpCap Advisors
1345 Avenue of the Americas
New York, NY 10105
SUB-ADVISER - SCIENCE & TECHNOLOGY
PIMCO Equity Advisors
1345 Avenue of the Americas
New York, NY 10105
CUSTODIAN AND TRANSFER AGENT
State Street Corp.
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.
