<PAGE>
OCC ACCUMULATION TRUST
GLOBAL EQUITY PORTFOLIO
SEMI-ANNUAL REPORT
JUNE 30, 2000
MANAGED BY
[LOGO]
<PAGE>
OCC ACCUMULATION TRUST
GLOBAL EQUITY PORTFOLIO
MANAGED BY
[LOGO]
2000 SEMI-ANNUAL REPORT
Most global stock markets were somewhat lower during the first half of 2000,
reflecting the pullback of many highly priced technology stocks as well as
investor concerns about higher interest rates. The Global Equity Portfolio (the
"Portfolio") performed well relative to the market, declining 0.5% compared with
a 2.6% decrease for the Morgan Stanley World Index (the "World Index") in U.S.
dollars. These results included a gain of 1.7% for the Portfolio in the second
quarter versus a drop of 3.5% for the World Index. We are pleased with these
results, which reflect our goal of achieving excellent long-term performance by
preserving capital in periods of market turmoil and capturing gains when markets
rise.
Our strong relative performance was driven by an eclectic group of holdings that
bucked the overall market downtrend and increased in value during the first half
of the year. These included Alcatel, a French manufacturer of telecommunications
equipment, which rallied on the strength of robust earnings and restructuring
activities; Groupe Danone, a French-based global food company which has
demonstrated its ability to grow revenues and profits at a time when many
industry peers are struggling; and Teva Pharmaceutical Industries, an Israeli
generic and ethical pharmaceuticals producer.
Among our U.S. holdings, top contributors included American Home Products, a
pharmaceuticals, consumer health care and agricultural products company, which
benefited from growing investor recognition that its litigation liabilities are
controllable and its new product pipeline is one of the best in the
pharmaceuticals industry; and Kroger, the supermarket chain, which advanced on
the strength of its aggressive strategy in a consolidating supermarket industry.
Detractors from performance in the half included British banking firm Lloyds TSB
Group, which slipped because of concerns over its Internet expenditures,
although we believe these expenditures will add value over the long-term; and
McDonald's, the global fast food chain, which fell due to weak spring same-store
sales in the U.S. and Europe and concerns that the sagging euro might hurt the
company's earnings from its European operations.
The Portfolio returned 11.0% for the twelve months ended June 30, 2000, compared
with 12.2% for the World Index. For the three years ended June 30, 2000, the
Portfolio provided an average annual total return of 12.5% compared with 14.9%
for the World Index, and for the five years ended June 30, 2000 the Portfolio's
total return of 15.2% compared with 17.1% for the World Index. From its
inception on March 1, 1995 through June 30, 2000, the Portfolio delivered an
average annual return of 16.2% compared with 17.9% for the World Index. Returns
for the Portfolio take into account expenses incurred by the Portfolio, but not
separate account charges imposed by the insurance company.
In managing the Portfolio, we seek to generate superior long-term performance,
while controlling volatility and risk, by investing in companies that we believe
are well managed, have solid balance sheets, and generate sustainable
profitability and cash flow. In addition, we want to purchase the shares of
these quality companies at inexpensive prices relative to their earnings and
cash flow.
During the first half of 2000, we established new positions in such stocks as
Amadeus Travel Services, based in Spain, an attractively valued provider of
integrated travel systems to major airlines and travel agents; Shizuoka Bank,
the best-capitalized bank in Japan; Alcoa, the world's leading producer of
aluminum, which we believe is well positioned to capitalize on improving global
demand for the metal; pharmaceuticals companies Eli Lilly and Novartis; and
energy companies Chevron and USX-Marathon.
At June 30, 2000, the Portfolio's assets were allocated 59.0% to non-U.S.
securities, 34.0% to U.S. securities and 4.5% to short-term investments. Apart
from the United States, the largest country positions
<PAGE>
were the United Kingdom, representing 13.8% of the Portfolio's net assets;
Japan, 10.7% of net assets; France, 8.1% of net assets; Sweden, 5.9% of net
assets; and Spain, 3.5% of net assets.
Country allocation is a result of individual company selection. We invest in
quality businesses available at reasonable prices, wherever they are located,
rather than pre-determining how much we will invest in any particular country.
In this way, we seek to capitalize on opportunity wherever it may exist. Many of
the companies in which the Portfolio invests are global in their operations, so
that the distinctions between investments in various countries are not always
clear-cut. For instance, Groupe Danone, based in France, generates about
one-third of its revenue from sales in that country, a little over one-third
from the rest of Europe and a little under one-third from the rest of the world.
It is best known in the United States for its Dannon yogurt and Evian water
brands.
The Portfolio's five largest non-U.S. equity holdings at June 30, 2000 were
Shiseido, a Japanese cosmetics company, representing 2.5% of the Portfolio's net
assets; Alcatel, a French manufacturer of telecommunications equipment, 2.2% of
net assets; Lloyds TSB Group, a British banking and financial services company,
2.1% of net assets; Novartis, a global pharmaceuticals company based in
Switzerland, 2.1% of net assets; and Groupe Danone, the French food products
company, 2.0% of net assets.
The five largest U.S. equity holdings were McDonald's, a premier fast-food
company with growing global markets, representing 2.8% of net assets; Pharmacia,
a leading pharmaceuticals company, 2.8% of net assets; Freddie Mac, which
originates and securitizes home mortgages, 2.7% of 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, 2.1% of
net assets; and du Pont (E.I.) de Nemours, a diversified technology and
industrial company, 2.1% of net assets.
Major industry positions were: telecommunications, representing 11.3% of the
Portfolio's net assets at June 30, 2000; drugs & medical products, 11.2% of net
assets; financial services, 11.0% of net assets; banking, 9.6% of net assets;
and retail, 8.0% of net assets.
<PAGE>
OCC ACCUMULATION TRUST
GLOBAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS
JUNE 30, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
------ -----------
<C> <S> <C>
COMMON STOCK -- 93.0%
AUSTRALIA -- 0.1%
MEDIA/BROADCASTING -- 0.1%
800 News Corp. Ltd.+............................................ $ 38,000
-----------
BERMUDA -- 1.6%
INSURANCE -- 1.6%
13,100 XL Capital Ltd. ............................................ 709,038
-----------
BRAZIL -- 0.0%
PAPER PRODUCTS -- 0.0%
210,000 Empresa Nacional de Comercio Redito E Participacoes SA*+.... 547
-----------
CANADA -- 1.4%
DIVERSIFIED -- 1.4%
23,487 Canadian Pacific Ltd. ...................................... 609,392
-----------
DENMARK -- 1.4%
FINANCIAL SERVICES -- 1.4%
82,576 Nordic Baltic Holding AB*................................... 602,228
-----------
FRANCE -- 8.1%
BANKING -- 1.2%
5,200 BNP Paribas................................................. 500,416
-----------
ELECTRONICS -- 2.2%
14,750 Alcatel..................................................... 967,422
-----------
FINANCIAL SERVICES -- 1.0%
7,000 Societe Generale............................................ 421,023
-----------
FOOD & BEVERAGES -- 2.0%
6,500 Groupe Danone............................................... 862,572
-----------
INSURANCE -- 0.6%
6,300 Scor SA..................................................... 274,326
-----------
OFFICE EQUIPMENT -- 1.1%
9,400 Societe BIC SA.............................................. 460,376
-----------
Total France................................................ 3,486,135
-----------
GERMANY -- 1.9%
MANUFACTURING -- 1.9%
5,400 Siemens AG.................................................. 814,550
-----------
GREECE -- 1.3%
TELECOMMUNICATIONS -- 1.3%
47,700 Panafon Hellenic Telecom SA................................. 536,625
-----------
</TABLE>
<PAGE>
OCC ACCUMULATION TRUST
GLOBAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS
JUNE 30, 2000
(UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
SHARES VALUE
------ -----------
<C> <S> <C>
COMMON STOCK (CONTINUED)
HONG KONG -- 1.0%
INDUSTRIAL MANUFACTURING -- 1.0%
192,500 Yue Yuen Industrial Holdings Ltd. .......................... $ 424,732
-----------
INDIA -- 1.9%
BANKING -- 1.1%
49,000 State Bank of India GDR..................................... 477,750
-----------
TELECOMMUNICATIONS -- 0.8%
36,000 Mahanagar Telephone Nigam Ltd. ............................. 360,000
-----------
Total India................................................. 837,750
-----------
ISRAEL -- 1.8%
DRUGS & MEDICAL PRODUCTS -- 1.8%
13,600 Teva Pharmaceutical Industries Ltd. ADR..................... 753,950
-----------
ITALY -- 1.4%
TELECOMMUNICATIONS -- 1.4%
92,300 Telecom Italia SpA.......................................... 612,426
-----------
JAPAN -- 10.7%
BANKING -- 0.7%
33,000 Shizuoka Bank Ltd........................................... 279,911
-----------
CONSUMER DURABLES -- 1.3%
11,000 Canon, Inc. ................................................ 547,382
-----------
CONSUMER NON-DURABLES -- 3.9%
35,900 Canon Sales Co., Inc. ...................................... 642,854
69,000 Shiseido Co. Ltd. .......................................... 1,066,491
-----------
1,709,345
-----------
ELECTRONICS -- 1.4%
18,000 Fujitsu Ltd. ............................................... 622,591
-----------
FINANCIAL SERVICES -- 1.7%
73,000 Nikko Securities Co., Ltd. ................................. 722,398
-----------
RETAIL -- 1.7%
19,500 FamilyMart Co., Ltd. ....................................... 749,823
-----------
Total Japan................................................. 4,631,450
-----------
NETHERLANDS -- 0.5%
BUSINESS SERVICES -- 0.5%
8,000 Burhrmann NV................................................ 228,746
-----------
POLAND -- 0.6%
TELECOMMUNICATIONS -- 0.6%
40,000 Telekomunikacja Polska SA................................... 274,000
-----------
</TABLE>
<PAGE>
OCC ACCUMULATION TRUST
GLOBAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS
JUNE 30, 2000
(UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
SHARES VALUE
------ -----------
<C> <S> <C>
COMMON STOCK (CONTINUED)
SPAIN -- 3.5%
BANKING -- 1.7%
23,100 Banco Popular Espanol SA.................................... $ 714,536
-----------
COMPUTER SERVICES -- 0.6%
24,000 Amadeus Global Travel Distribution SA....................... 273,808
-----------
TELECOMMUNICATIONS -- 1.2%
24,260 Telefonica SA*.............................................. 521,123
-----------
Total Spain................................................. 1,509,467
-----------
SWEDEN -- 5.9%
BANKING -- 1.1%
41,000 Skandinaviska Enskilda Banken............................... 485,771
-----------
CONSUMER DURABLES -- 0.9%
26,400 Electrolux AB............................................... 408,571
-----------
DRUGS & MEDICAL PRODUCTS -- 2.6%
9,600 AstraZeneca Group plc....................................... 446,258
13,198 Pharmacia Corp.*............................................ 666,634
-----------
1,112,892
-----------
TELECOMMUNICATIONS -- 1.3%
28,300 Telefonaktiebolaget LM Ericsson AB.......................... 559,904
-----------
Total Sweden................................................ 2,567,138
-----------
SWITZERLAND -- 2.1%
DRUGS & MEDICAL PRODUCTS -- 2.1%
567 Novartis AG................................................. 898,135
-----------
UNITED KINGDOM -- 13.8%
CONSUMER PRODUCTS -- 1.1%
40,500 Reckitt Benckiser plc....................................... 453,476
-----------
DRUGS & MEDICAL PRODUCTS -- 1.5%
174,400 Smith & Nephew plc.......................................... 643,878
112 SmithKline Beecham plc...................................... 1,466
-----------
645,344
-----------
FINANCIAL SERVICES -- 3.2%
96,000 Lloyds TSB Group plc........................................ 906,407
29,300 Royal Bank of Scotland Group plc............................ 490,332
-----------
1,396,739
-----------
</TABLE>
<PAGE>
OCC ACCUMULATION TRUST
GLOBAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS
JUNE 30, 2000
(UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
SHARES VALUE
------ -----------
<C> <S> <C>
COMMON STOCK (CONTINUED)
UNITED KINGDOM (CONTINUED)
INDUSTRIAL -- 0.8%
87,200 Invensys plc................................................ $ 327,217
-----------
INDUSTRIAL MATERIALS -- 1.0%
77,000 Williams plc................................................ 448,558
-----------
RETAIL -- 2.9%
88,100 Boots Co. plc............................................... 670,520
92,200 Great Universal Stores plc.................................. 592,908
-----------
1,263,428
-----------
SERVICES -- 0.9%
162,200 Rentokil Initial plc........................................ 368,137
-----------
TELECOMMUNICATIONS -- 2.4%
16,400 British Telecommunications plc.............................. 211,919
204,300 Vodafone AirTouch plc....................................... 825,367
-----------
1,037,286
-----------
Total United Kingdom........................................ 5,940,185
-----------
UNITED STATES -- 34.0%
AEROSPACE/DEFENSE -- 1.9%
19,950 Boeing Co................................................... 834,159
-----------
AIRLINES -- 0.2%
3,500 AMR Corp.*.................................................. 92,531
-----------
BANKING -- 3.9%
7,000 FleetBoston Financial Corp.................................. 238,000
1,200 M&T Bank Corp............................................... 540,000
23,400 Wells Fargo & Co............................................ 906,750
-----------
1,684,750
-----------
CHEMICALS -- 2.1%
20,500 du Pont (E.I.) de Nemours & Co.............................. 896,875
-----------
COMPUTERS -- 0.1%
1,000 Dell Computer Corp.*........................................ 49,312
-----------
COMPUTER SERVICES -- 0.9%
8,300 Compuware Corp.*............................................ 86,113
2,100 Electronic Data Systems Corp. .............................. 86,625
6,579 Sabre Holdings Corp......................................... 187,502
-----------
360,240
-----------
</TABLE>
<PAGE>
OCC ACCUMULATION TRUST
GLOBAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS
JUNE 30, 2000
(UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
SHARES VALUE
------ -----------
<C> <S> <C>
COMMON STOCK (CONTINUED)
UNITED STATES (CONTINUED)
CONGLOMERATES -- 2.0%
4,900 Minnesota Mining & Manufacturing Co. ....................... $ 404,250
8,400 Textron, Inc................................................ 456,225
-----------
860,475
-----------
DRUGS & MEDICAL PRODUCTS -- 3.4%
12,300 American Home Products Corp. ............................... 722,625
2,500 Bristol-Myers Squibb Co. ................................... 145,625
500 Lilly (Eli) & Co. .......................................... 49,938
10,100 Pharmacia Corp. ............................................ 522,044
-----------
1,440,232
-----------
ELECTRONICS -- 0.6%
3,100 Emerson Electric Co......................................... 187,163
1,100 Solectron Corp.*............................................ 46,062
-----------
233,225
-----------
ENERGY -- 0.8%
2,700 Anadarko Petroleum Corp. ................................... 133,144
6,400 Unocal Corp. ............................................... 212,000
-----------
345,144
-----------
FINANCIAL SERVICES -- 5.4%
8,500 Citigroup, Inc. ............................................ 512,125
29,000 Freddie Mac................................................. 1,174,500
13,500 Household International, Inc. .............................. 561,094
4,200 John Hancock Financial Services, Inc.*...................... 99,487
-----------
2,347,206
-----------
FOOD SERVICES -- 2.8%
37,000 McDonald's Corp. ........................................... 1,218,687
-----------
LEISURE -- 0.1%
1,600 Carnival Corp. ............................................. 31,200
-----------
MANUFACTURING -- 2.0%
6,500 Alcoa, Inc.*................................................ 188,500
22,500 ITT Corp.*.................................................. 683,438
-----------
871,938
-----------
OIL/GAS -- 1.6%
7,100 Chevron Corp................................................ 602,169
2,375 Tosco Corp.................................................. 67,242
1,300 USX-Marathon Group.......................................... 32,581
-----------
701,992
-----------
</TABLE>
<PAGE>
OCC ACCUMULATION TRUST
GLOBAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS
JUNE 30, 2000
(UNAUDITED) (CONCLUDED)
<TABLE>
<CAPTION>
SHARES VALUE
------ -----------
<C> <S> <C>
COMMON STOCK (CONTINUED)
UNITED STATES (CONTINUED)
RETAIL -- 1.7%
600 CVS Corp. .................................................. $ 24,000
32,000 Kroger Co.*................................................. 706,000
-----------
730,000
-----------
TECHNOLOGY -- 2.0%
15,600 Computer Associates International, Inc. .................... 798,525
600 Intel Corp. ................................................ 80,213
-----------
878,738
-----------
TELECOMMUNICATIONS -- 2.2%
2,700 AT&T Corp................................................... 85,388
11,100 Bell Atlantic Corp.*++ ..................................... 564,019
800 Motorola, Inc. ............................................. 23,250
3,400 Sprint Corp. ............................................... 173,400
2,500 WorldCom, Inc.*............................................. 114,688
-----------
960,745
-----------
WASTE DISPOSAL -- 0.3%
6,900 Waste Management, Inc....................................... 131,100
-----------
Total United States......................................... 14,668,549
-----------
Total Common Stock (cost-$38,121,713)....................... 40,143,043
-----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000)
---------------------
<C> <S> <C> <C>
U.S. GOVERNMENT AGENCY DISCOUNT NOTES -- 4.5%
Federal Home Loan Bank, 6.57%, 7/3/00
$1,950 (amortized cost-$1,949,288)........................................... 1,949,288
-----------
Total Investments (cost-$40,071,001)........................ 97.5% 42,092,331
Liabilities in excess of other assets....................... 2.5 1,089,081
----- -----------
Net Assets.................................................. 100.0% $43,181,412
===== ===========
</TABLE>
------------------------------
+ Preferred Stock
* Non-income producing security
++ Effective July 3, 2000, the name of this company changed to Verizon
Communications.
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, 2000
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS:
Investments, at value (cost-$40,071,001).................... $42,092,331
Cash........................................................ 15,210
Receivable for investments sold............................. 1,322,251
Dividends and tax reclaims receivable....................... 77,172
Receivable from shares of beneficial interest sold.......... 15,465
Prepaid expenses............................................ 1,087
-----------
Total Assets.............................................. 43,523,516
-----------
LIABILITIES:
Payable for investments purchased........................... 272,608
Payable for shares of beneficial interest redeemed.......... 9,482
Investment advisory fee payable............................. 28,482
Net unrealized depreciation on foreign currency contracts... 4,752
Trustees' retirement plan payable........................... 4,520
Accrued expenses............................................ 22,260
-----------
Total Liabilities......................................... 342,104
-----------
Net Assets................................................ $43,181,412
===========
COMPOSITION OF NET ASSETS:
Beneficial interest shares of $0.01 par value (unlimited
number authorized)........................................ $ 27,407
Paid-in-capital in excess of par............................ 38,111,022
Accumulated undistributed net investment income............. 262,534
Accumulated net realized gain on investments................ 2,758,655
Net unrealized appreciation of investments and other assets
and liabilities denominated in foreign currency........... 2,021,794
-----------
Net Assets................................................ $43,181,412
===========
Shares outstanding.......................................... 2,740,670
-----------
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER
SHARE..................................................... $15.76
----------
----------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
<PAGE>
OCC ACCUMULATION TRUST
GLOBAL EQUITY PORTFOLIO
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2000
(UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends (net of foreign withholding taxes of $46,327)... $ 419,912
Interest.................................................. 78,166
----------
Total investment income................................. 498,078
----------
EXPENSES:
Investment advisory fees.................................. 169,443
Custodian fees............................................ 37,761
Audit and tax service fees................................ 6,450
Reports to shareholders................................... 6,446
Trustees' fees and expenses............................... 5,843
Transfer agent fees....................................... 2,933
Legal fees................................................ 2,550
Insurance expense......................................... 1,034
Miscellaneous............................................. 396
----------
Total expenses.......................................... 232,856
Less: expense offset.................................... (451)
----------
Net expenses............................................ 232,405
----------
Net investment income................................. 265,673
----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND
FOREIGN CURRENCY TRANSACTIONS:
Net realized gain on investments.......................... 2,950,688
Net realized loss on foreign currency transactions........ (65,129)
Net change in unrealized appreciation/depreciation on
investments and other assets
and liabilities denominated in foreign currency......... (3,348,423)
----------
Net realized and unrealized loss on investments and
foreign currency transactions......................... (462,864)
----------
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS...... $ (197,191)
==========
</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
JUNE 30, 2000 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1999
------------- -----------------
<S> <C> <C>
OPERATIONS:
Net investment income....................................... $ 265,673 $ 181,819
Net realized gain on investments and foreign currency
transactions.............................................. 2,885,559 8,211,347
Net change in unrealized appreciation/depreciation of
investments
and other assets and liabilities denominated in foreign
currency.................................................. (3,348,423) 648,000
------------ ------------
Net increase (decrease) in net assets resulting from
operations............................................ (197,191) 9,041,166
------------ ------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income....................................... -- (569,505)
Net realized gains.......................................... (1,734,473) (6,011,036)
------------ ------------
Total dividends and distributions to shareholders....... (1,734,473) (6,580,541)
------------ ------------
SHARE TRANSACTIONS:
Net proceeds from the sale of shares........................ 10,199,277 15,608,376
Reinvestment of dividends and distributions................. 1,734,473 6,580,541
Cost of shares redeemed..................................... (10,232,233) (16,015,175)
------------ ------------
Net increase in net assets from share transactions...... 1,701,517 6,173,742
------------ ------------
Total increase (decrease) in net assets............... (230,147) 8,634,367
NET ASSETS:
Beginning of year........................................... 43,411,559 34,777,192
------------ ------------
End of period (including undistributed net investment income
of $262,534 and $533,159, respectively)................... $ 43,181,412 $ 43,411,559
============ ============
SHARES ISSUED AND REDEEMED:
Issued...................................................... 652,570 889,280
Issued in reinvestment of dividends and distributions....... 121,122 397,827
Redeemed.................................................... (653,976) (920,505)
------------ ------------
Net increase.............................................. 119,716 366,602
============ ============
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
<PAGE>
OCC ACCUMULATION TRUST
GLOBAL EQUITY PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD:
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31, FOR THE PERIOD
JUNE 30, 2000 ----------------------------------------------- MARCH 1, 1995 (1) TO
(UNAUDITED) 1999 1998 1997 1996 DECEMBER 31, 1995
------------- -------- -------- -------- -------- --------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period.............................. $16.56 $15.43 $14.32 $13.23 $11.61 $10.00
------- ------- ------- ------- ------- ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income............... 0.10 0.31 0.12 0.06 0.04 0.05
Net realized and unrealized gain
(loss) on investments and foreign
currency transactions............. (0.25) 3.78 1.78 1.79 1.70 1.83
------- ------- ------- ------- ------- ------
Total income (loss) from
investment operations........... (0.15) 4.09 1.90 1.85 1.74 1.88
------- ------- ------- ------- ------- ------
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS:
From net investment income............ -- (0.26) (0.18) (0.04) (0.05) (0.03)
In excess of net investment income.... -- -- -- (0.03) -- --
From net realized gains............... (0.65) (2.70) (0.61) (0.69) (0.07) (0.24)
------- ------- ------- ------- ------- ------
Total dividends and
distributions to
shareholders.................. (0.65) (2.96) (0.79) (0.76) (0.12) (0.27)
------- ------- ------- ------- ------- ------
Net asset value, end of period........ $15.76 $16.56 $15.43 $14.32 $13.23 $11.61
======= ======= ======= ======= ======= ======
TOTAL RETURN (2)...................... (0.5)% 26.5% 13.3% 14.0% 15.0% 18.9%
======= ======= ======= ======= ======= ======
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's)..... $43,181 $43,412 $34,777 $25,874 $16,972 $2,891
Ratio of expenses to average net
assets (3).......................... 1.11%(5) 1.10% 1.13% 1.19%(4) 1.42%(4) 1.25%(4)(5)
Ratio of net investment income to
average
net assets.......................... 1.25%(5) 0.48% 0.79% 0.45%(4) 0.81%(4) 1.02%(4)(5)
Portfolio Turnover.................... 72% 83% 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) Inclusive of expenses offset by earnings credits from custodian bank (See 1H
in Notes to Financial Statements).
(4) During the fiscal periods indicated 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
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, 1.83% and 0.40%, respectively, for the
year ended December 31, 1996 and 3.94%, (annualized) and (1.67)%,
(annualized), respectively, for the period March 1, 1995 (commencement of
operations) to December 31, 1995.
(5) Annualized
<PAGE>
OCC ACCUMULATION TRUST
GLOBAL EQUITY 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 "Portfolio"), the
Managed Portfolio, the U.S. Government Income Portfolio, the Mid Cap Portfolio,
and the Science & Technology 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 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. 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 that are
recorded as soon after the ex-dividend date as the Portfolio, using reasonable
diligence, becomes aware of such dividends. 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 interest method.
<PAGE>
OCC ACCUMULATION TRUST
GLOBAL EQUITY PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2000
(UNAUDITED) (CONTINUED)
(1) ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(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 denominated in foreign currency are translated at the prevailing
exchange rate on valuation dates; (2) purchases and sales of investments, income
and expenses are translated at the rates of exchange prevailing respective dates
of such transactions. The resulting net foreign currency gain and loss is
included in the Statement of Operations.
The Portfolio does not generally isolate that portion of the results of
operations arising as a result of changes in the foreign currency exchange rates
from fluctuations arising from changes in the market prices of securities.
Accordingly, such foreign currency gain (loss) is included in net realized and
unrealized gain (loss) on investments. However, the Portfolio does isolate the
effect of fluctuations in foreign currency exchange rates when determining the
gain or loss upon the sale or maturity of foreign currency denominated debt
obligations pursuant to U.S. federal income tax regulations; such amount is
categorized as foreign currency gain or loss for both financial reporting and
income tax reporting purposes.
Net foreign currency gain (loss) from valuing foreign currency denominated
assets and liabilities at period end exchange rates is reflected as a component
of net unrealized appreciation of investments and other assets and liabilities
denominated in foreign currency. Net realized foreign currency gain (loss) is
treated as ordinary income (loss) for income tax reporting purposes.
(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 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 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 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.
<PAGE>
OCC ACCUMULATION TRUST
GLOBAL EQUITY PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2000
(UNAUDITED) (CONTINUED)
(1) ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(H) 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.
(I) TRUSTEES' RETIREMENT PLAN
The Trustees have adopted a Retirement Plan (the "Plan") effective January 1,
1999. The Plan 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 lessor period as may be approved by the Board of Trustees) to
become eligible to receive benefits. For the six months ended June 30, 2000, the
Portfolio accrued $1,789 in connection with the Plan.
(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 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 is contractually obligated to waive that portion of the advisory fee and
to assume any necessary expense 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) INVESTMENTS IN SECURITIES
For federal income tax purposes the cost of securities owned at June 30, 2000
was $40,071,001. Accordingly, net unrealized appreciation of investments of
$2,021,330 was composed of gross appreciation of $4,106,505 for those
investments having an excess of value over cost and gross depreciation of
$2,085,175 for those investments having an excess of cost over value.
For the six months ended June 30, 2000, purchases and sales of investment
securities, other than short-term securities, aggregated $28,411,857 and
$28,468,541, 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 agreement with OpCap Advisors. Prior to the closing of the
Implementation Agreement, the Board of Trustees and stockholders of the
Portfolio approved a new agreement with OpCap Advisors to become effective upon
the closing of the Implementation Agreement.
<PAGE>
OCC ACCUMULATION TRUST
GLOBAL EQUITY PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2000
(UNAUDITED) (CONCLUDED)
(5) SPECIAL MEETING OF SHAREHOLDERS
The Portfolio held a special meeting of shareholders on March 3, 2000.
Shareholders voted to: 1) approve a new investment advisory agreement between
OpCap Advisors and the Portfolio; 2) elect V. Lee Barnes, Paul Y. Clinton,
Thomas W. Courtney, Lacy B. Herrmann, Joseph M. La Motta and Theodore Mason as
Trustees of the Portfolio; and, 3) ratifiy the appointment of
PricewaterhouseCoopers LLP as independent accountants for the fiscal year ending
December 31, 2000.
The resulting vote count for each proposal is indicated below.
<TABLE>
<CAPTION>
WITHHHOLD
AFFIRMATIVE AGAINST AUTHORITY
----------- -------- ---------
<S> <C> <C> <C>
1. Approval of new Investment Advisory Agreement between
OpCap Advisors and the Portfolio:......................... 2,080,315 8,876 138,682
2. Election of Trustees:
V. Lee Barnes............................................. 2,183,597 -- 44,276
Paul Y. Clinton........................................... 2,177,815 -- 50,058
Thomas W. Courtney........................................ 2,182,218 -- 45,655
Lacy B. Herrmann.......................................... 2,183,597 -- 44,276
Joseph M. La Motta........................................ 2,183,571 -- 44,302
Theodore T. Mason......................................... 2,182,219 -- 45,654
</TABLE>
3. Ratification of the appointment of PricewaterhouseCoopers LLP as the
Portfolio's independent accountants for the fiscal year ending December 31,
2000.
<TABLE>
<S> <C> <C> <C>
2,141,009 4,310 82,554
</TABLE>
<PAGE>
OCC ACCUMULATION TRUST
1345 AVENUE OF THE AMERICAS
NEW YORK, NY 10105
<TABLE>
<S> <C>
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
</TABLE>
INVESTMENT ADVISER
OpCap 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.
