<PAGE>
The
Corporate
Fund
Accumulation
Program,
Inc.
FUND LOGO
Annual Report
December 31, 1994
This report is not authorized for use as an offer of sale or a
solicitation of an offer to buy shares of the Program unless
accompanied or preceded by the Program's current prospectus. Past
performance results shown in this report should not be considered a
representation of future performance. Investment return and
principal value of shares will fluctuate so that shares, when
redeemed, may be worth more or less than their original cost.
The Corporate Fund
Accumulation Program, Inc.
Box 9011
Princeton, NJ 08543-9011
To Our Shareholders:
For the year ended December 31, 1994, The Corporate Fund
Accumulation Program, Inc. provided a total investment return of
- -5.78%, based on a change in per share net asset value from $21.55
to $19.14, and assuming reinvestment of $1.180 per share income
dividends.
<PAGE>
For the six-month period ended December 31, 1994, The Corporate Fund
Accumulation Program, Inc. provided a total investment return of
+0.25%, based on a change in per share net asset value from $19.73
to $19.14 and assuming reinvestment of $0.640 per share income
dividends.
The Environment
Volatility in the US financial markets continued during the six
months ended December 31, 1994, largely prompted by concerns of
increasing inflationary pressures. The possibility of continued
monetary policy tightening by the Federal Reserve Board was
predominant in the minds of investors throughout most of the period.
Therefore, there was little surprise in mid-November when the
central bank announced the sixth increase in short-term interest
rates in 1994. Early in the period, the weakness of the US dollar in
foreign exchange markets prompted declines in US stock and bond
prices, but some strengthening of the US currency has occurred
recently.
<PAGE>
The manufacturing sector was the driving force behind the US economy
through the final quarter of the year, making an important
contribution to the substantial increase in corporate earnings. US
companies have been successful at containing labor costs, which are
an important component of the inflation outlook. Although consumer
spending grew at a slower pace than in previous economic recoveries,
purchases of vehicles and household durable goods rose in the latter
months of 1994. Despite the relatively modest rise in consumer
spending, the personal savings rate fell to an all-time annual low
in 1994.
In the weeks ahead, investors will continue to assess economic data
and inflationary trends in order to gauge whether further increases
in short-term interest rates are likely. The core inflation rate
rose less than 3% in 1994 following a 3% increase in 1993, the best
sustained inflation performance in 30 years. It is not likely that
such positive inflation results will be duplicated in 1995. In
addition, investor interest in the new year will also be focused on
the progress that the new Congress makes on both reducing spending
and the Federal budget deficit and passing tax cuts that promote
savings and investment. Legislative progress, combined with
continued indications of moderate and sustainable levels of economic
growth, would be positive for the US capital markets. However, the
lagged effects of higher interest rates could slow the economy
sharply and with it, the growth of corporate profits.
Fiscal Year in Review
The bond market experienced one of its worst years ever in 1994 as
interest rates rose relentlessly and prices dropped in every sector
of the yield curve. Fueling the increase in interest rates was a
series of six tightening actions begun by the Federal Reserve Board
in February 1994 which caused the Federal Funds rate to surge 250
basis points (2.50%). These moves were designed to slow economic
growth in order to contain inflationary pressures. Evidence about
the effectiveness of the Federal Reserve Board's action has been
ambiguous so far.
Some data suggest that higher rates impacted the housing market and
consumer spending patterns. Other data indicate that the economy is
still expanding at a worrisome rate, especially in industrial
production and in the capacity utilization rate.
Such inconclusive economic indicators resulted in volatile interest
rates, with a continuing upward bias. The decline in the market value
of fixed-income securities can be measured in the performance of the
unmanaged Merrill Lynch C0A0 Corporate Master Bond Index, which had
a total return of -3.34% for the 12-month period ended December 31,
1994, while total return for the Fund was -5.78%.
<PAGE>
During 1994, we pursued a defensive strategy consistent with the
objective to generate current income. We shortened the average
portfolio maturity from 9.7 years to 8.8 years, and we sold some of
our long-term electric utility issues, which we believed would be
vulnerable to changes in this competitive industry. We purchased
short-term US Government agency and corporate floating rate notes
whose coupons reset with increases in short-term yields.
Additionally, we increased our holdings in financial services
issues. These strategies helped to mitigate to some degree the
negative effect of higher interest rates on the Program's total
return. We expect to continue to increase cash and cash equivalent
holdings because of our concern that interest rates will remain
sensitive to inflationary fears.
In Conclusion
We appreciate your ongoing interest in The Corporate Fund
Accumulation Program, Inc., and we look forward to sharing our
investment strategy with you in our upcoming semi-annual report to
shareholders.
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
(Jay C. Harbeck)
Jay C. Harbeck
Vice President and Portfolio Manager
February 13, 1995
Officers and Directors
Arthur Zeikel--President and Director
Ronald W. Forbes--Director
Cynthia A. Montgomery--Director
Charles C. Reilly--Director
Kevin A. Ryan--Director
Richard R. West--Director
Terry K. Glenn--Executive Vice President
N. John Hewitt--Senior Vice President
Donald C. Burke--Vice President
Jay C. Harbeck--Vice President
Gerald M. Richard--Treasurer
Susan B. Baker--Secretary
<PAGE>
Custodian and Transfer Agent
The Bank of New York
90 Washington Street
New York, New York 10286
The Corporate Fund Accumulation Program, Inc.
Total Return Based on a $10,000 Investment
A line graph depicting the growth of an investment in the Fund
compared to the growth of an investment in the Merrill Lynch C0A0
Corporate Master Bond Index. Beginning and ending values are:
12/84 12/94
The Corporate Fund Accumulation
Program, Inc.*++ $10,000 $23,549
Merrill Lynch C0A0 Corporate
Master Bond Index++++ $10,000 $27,999
[FN]
*Assuming transaction costs and other operating expenses, including
advisory fees
++The Corporate Fund Accumulation Program, Inc. invests in long- and
intermediate-term fixed-interest bearing debt obligations issued
primarily by corporations.
++++This unmanaged Index is comprised of all industrial bonds rated
BBB3 or higher, of all maturities.
Past performance is not predictive of future performance.
<TABLE>
The Corporate Fund Accumulation Program, Inc.
Schedule of Investments December 31, 1994
<CAPTION>
S&P Moody's Face Value
Industry Rating Rating Amount Issue Cost (Note 1a)
<S> <S> <S> <C> <S> <C> <C>
US Government Obligations
US Government AAA Aaa $ 500,000 Federal National Mortgage Association,
Obligations-- 5.20% due 7/10/1998 $ 456,475 $ 483,460
11.5% AAA Aaa 2,500,000 US Treasury Bonds, 7.50% due 11/15/2024 2,447,687 2,391,400
US Treasury Notes:
AAA Aaa 2,500,000 8.75% due 8/15/2000 2,905,278 2,602,350
AAA Aaa 500,000 8.50% due 11/15/2000 535,109 515,390
AAA Aaa 3,500,000 7.875% due 11/15/2004 3,481,160 3,509,835
----------- -----------
9,825,709 9,502,435
<PAGE>
Total US Government Obligations--11.5% 9,825,709 9,502,435
Corporate Bonds & Notes
Banks & A+ Aa3 2,000,000 Boatmen's Bancshares, Inc., 5.68% due
Thrifts--12.2% 6/14/1995 2,000,000 1,997,844
A- A3 465,000 First Union Corporation, 8.125% due
6/24/2002 517,523 452,138
A- A3 3,000,000 Huntington Bancshares, 7.625% due 1/15/2003 3,054,135 2,836,680
A+ A1 2,000,000 Norwest Corp., 6.625% due 3/15/2003 2,012,146 1,789,940
A Aa3 1,000,000 Society National Bank, 6.00% due 4/25/1996 977,442 982,060
AA+ Aa2 1,000,000 Wachovia Bank, 6.55% due 6/09/1997 999,402 967,930
A A2 1,000,000 World Savings & Loan Association, 9.90% due
7/01/2000 1,025,405 1,046,990
----------- -----------
10,586,053 10,073,582
Financial-- A A2 1,000,000 Dean Witter & Discover Co., 6.50% due
Other--6.0% 11/01/2005 989,311 849,260
AAA Aaa 1,000,000 General Electric Capital Corp., 14.00% due
7/01/1996 1,104,655 1,085,340
BBB+ A3 2,000,000 PaineWebber Group Inc., 9.25% due 12/15/2001 2,292,400 2,020,680
A+ A3 1,000,000 Torchmark Corp., 9.625% due 5/01/1998 992,133 1,026,250
----------- -----------
5,378,499 4,981,530
Financial Chrysler Finance Corporation:
Services-- A A3 1,000,000 7.13% due 9/30/1996 985,646 984,340
Captive--3.7% BBB+ A3 1,000,000 10.95% due 8/01/2017 1,101,211 1,097,970
A A2 1,000,000 Ford Motor Credit Co., 8.00% due 6/15/2002 971,808 965,620
----------- -----------
3,058,665 3,047,930
Financial A+ A1 1,000,000 American General Finance Corp., 7.70% due
Services-- 11/15/1997 989,150 982,670
Consumer-- AA- A1 1,000,000 Associates Corp. of North America, 8.80% due
8.4% 8/01/1998 1,101,527 1,009,040
2,000,000 Beneficial Corp., 6.68% due 10/14/1997 2,000,000 1,998,800
A+ A1 2,000,000 CIT Group Holdings, Inc., 6.225% due
2/28/1997 1,998,914 2,008,060
A+ A2 1,000,000 Transamerica Finance Corp., 6.80% due
3/15/1999 999,771 941,660
----------- -----------
7,089,362 6,940,230
</TABLE>
<PAGE>
<TABLE>
The Corporate Fund Accumulation Program, Inc.
Schedule of Investments (continued) December 31, 1994
<CAPTION>
S&P Moody's Face Value
Industry Rating Rating Amount Issue Cost (Note 1a)
<S> <S> <S> <C> <S> <C> <C>
Corporate Bonds & Notes (continued)
Foreign*--9.7% AA- A1 $1,000,000 Aegon N.V., 8.00% due 8/15/2006 (b) $ 991,155 $ 958,170
A+ A2 1,500,000 CRA Finance Ltd., 6.50% due 12/01/2003 (b) 1,336,041 1,313,145
A- A2 2,000,000 Kingdom of Thailand, 8.25% due 3/15/2002 (a) 1,972,149 1,963,240
AA Aa2 1,000,000 Province of Ontario (Canada), 8.00% due
10/17/2001 (a) 1,067,053 985,780
A+ A1 2,500,000 Province of Quebec, 7.125% due 2/09/2024 (a) 2,054,285 2,008,850
AA A1 1,000,000 Republic of Italy, 6.875% due 9/27/2023 (a) 972,929 787,720
----------- -----------
8,393,612 8,016,905
Industrial-- A+ A1 2,000,000 Bass America, Inc., 8.125% due 3/31/2002 2,062,486 1,966,600
Consumer A+ A2 1,000,000 Dillard Department Stores, Inc., 7.375% due
Goods--11.8% 6/15/1999 1,022,799 965,040
A+ A2 2,000,000 Grand Metropolitan Investment Corp., 8.625%
due 8/15/2001 2,059,530 2,013,280
AAA Aaa 2,000,000 Johnson & Johnson Co., 8.72% due 11/01/2024 2,019,136 2,023,420
Philip Morris Companies, Inc.:
A A2 1,000,000 9.00% due 1/01/2001 1,020,665 1,012,090
A A2 2,000,000 7.25% due 1/15/2003 1,867,912 1,828,720
----------- -----------
10,052,528 9,809,150
Industrial-- BP America Inc.:
Energy--5.1% A+ Aa3 1,000,000 9.375% due 11/01/2000 1,084,467 1,049,250
AA- A1 1,000,000 7.875% due 5/15/2002 1,045,494 977,620
AA+ Aa1 1,000,000 10.00% due 7/01/2018 1,078,327 1,084,730
A- A3 1,000,000 Burlington Resources, Inc., 9.875% due
6/15/2010 1,271,442 1,107,500
----------- -----------
4,479,730 4,219,100
Industrial-- AA- Aa2 1,000,000 Archer-Daniels-Midland Co., 8.875% due
Other--3.8% 4/15/2011 1,074,870 1,039,840
Ford Capital B.V.:
A Aa2 1,000,000 9.875% due 5/15/2002 1,019,385 1,066,270
AA+ Aa1 1,000,000 9.50% due 6/01/2010 1,107,746 1,056,660
----------- -----------
3,202,001 3,162,770
Supranational-- AAA Aaa 2,000,000 International Bank for Reconstruction &
3.0% Development, 12.375% due 10/15/2002 2,017,002 2,461,900
Transportation-- Southwest Airlines Co.:
4.2% A- Baa1 2,500,000 9.40% due 7/01/2001 2,945,231 2,592,850
A- Baa1 1,000,000 7.875% due 9/01/2007 993,739 935,530
----------- -----------
3,938,970 3,528,380
</TABLE>
<PAGE>
<TABLE>
The Corporate Fund Accumulation Program, Inc.
Schedule of Investments (concluded) December 31, 1994
<CAPTION>
S&P Moody's Face Value
Industry Rating Rating Amount Issue Cost (Note 1a)
<S> <S> <S> <C> <S> <C> <C>
Corporate Bonds & Notes (concluded)
Utilities-- BBB+ Baa1 $ 500,000 GTE Corporation, 9.10% due 6/01/2003 $ 560,728 $ 512,425
Communica- AA- Aa3 1,000,000 Pacific Bell, Inc., 8.70% due 6/15/2001 1,046,319 1,019,600
tions--4.0% A+ A1 2,000,000 Southwestern Bell Telecommunications, Inc.,
6.125% due 3/01/2000 2,007,771 1,827,780
----------- -----------
3,614,818 3,359,805
Utilities-- A- A3 3,000,000 Georgia Power Co., 6.125% due 9/01/1999 2,972,997 2,767,770
Electric--7.2% A A2 1,000,000 Pennsylvania Power & Light Co., 7.75% due
5/01/2002 1,035,737 960,400
Virginia Electric & Power Co.:
A A2 1,250,000 8.00% due 3/01/2004 1,407,930 1,220,288
A A2 1,000,000 8.625% due 10/01/2024 980,846 986,137
----------- -----------
6,397,510 5,934,595
Utilities-- AA- A1 2,000,000 Consolidated Natural Gas Co., 8.75% due
Gas--2.4% 6/01/1999 2,113,023 2,025,680
Total Corporate Bonds & Notes--81.5% 70,321,773 67,561,557
Short-Term Securities
Commercial 1,000,000 American Express Credit Corp., 5.65% due
Paper**--1.2% 1/06/1995 999,058 999,058
Repurchase 3,591,000 UBS Securities Funding Inc., purchased on
Agreement***--4.3% 12/30/1994 to yield 5.75% to 1/03/1995 3,591,000 3,591,000
Total Short-Term Securities--5.5% 4,590,058 4,590,058
Total Investments--98.5% $84,737,540 81,654,050
===========
Other Assets Less Liabilities--1.5% 1,233,223
-----------
Net Assets--100.0% $82,887,273
===========
<PAGE>
<FN>
*Corresponding industry groups for foreign bonds which are
denominated in US dollars:
(a)Government entity.
(b)Financial institution: Government-owned and guaranteed.
**Commercial Paper is traded on a discount basis; the interest
rates shown are the discount rates paid at the time of purchase
by the Program.
***Repurchase Agreements are fully collateralized by US Government
Obligations.
Ratings of issues shown have not been audited by Deloitte &
Touche LLP.
See Notes to Financial Statements.
</TABLE>
<TABLE>
The Corporate Fund Accumulation Program, Inc.
Statement of Assets and Liabilities as of December 31, 1994
<CAPTION>
<S> <C> <C>
Assets:
Investments, at value (identified cost--$84,737,540) (Note 1a) $ 81,654,050
Cash 4,957
Receivables:
Interest $ 1,554,829
Capital shares sold 287 1,555,116
------------
Prepaid registration fees and other assets (Note 1d) 17,449
------------
Total assets 83,231,572
------------
Liabilities:
Payables:
Capital shares redeemed 104,066
Investment adviser (Note 2) 34,309
Dividends to shareholders (Note 1e) 7,778 146,153
------------
Accrued expenses and other liabilities 198,146
------------
Total liabilities 344,299
------------
Net Assets $ 82,887,273
============
Net Assets Consist of:
Common Stock, $.01 par value, 50,000,000 shares authorized $ 43,309
Paid-in capital in excess of par 90,146,956
Accumulated realized capital losses--net (4,219,502)
Unrealized depreciation on investments--net (3,083,490)
------------
Net Assets--Equivalent to $19.14 per share based on 4,330,853 shares outstanding $ 82,887,273
============
</TABLE>
<PAGE>
<TABLE>
The Corporate Fund Accumulation Program, Inc.
Statement of Operations for the Year Ended December 31, 1994
<CAPTION>
<S> <C> <C>
Investment Income (Note 1c):
Interest and premium and discount earned $ 6,560,280
Expenses:
Investment advisory fees (Note 2) $ 475,257
Transfer agent fees 323,673
Printing and shareholder reports 76,719
Accounting services (Note 2) 52,515
Professional fees 51,688
Registration fees (Note 1d) 34,729
Custodian fees 15,732
Directors' fees and expenses 14,831
Pricing services 3,280
Other 1,789
------------
Total expenses 1,050,213
------------
Investment income--net 5,510,067
Realized & Unrealized Loss on Investments--Net (Notes 1c & 3):
Realized loss on investments--net (4,218,614)
Change in unrealized appreciation/depreciation on investments--net (7,424,128)
------------
Net Decrease in Net Assets Resulting from Operations $ (6,132,675)
============
See Notes to Financial Statements.
</TABLE>
<TABLE>
The Corporate Fund Accumulation Program, Inc.
Statements of Changes in Net Assets
<CAPTION>
For the Year Ended Dec. 31,
Increase (Decrease) in Net Assets: 1994 1993
<S> <C> <C>
Operations:
Investment income--net $ 5,510,067 $ 5,922,490
Realized gain (loss) on investments--net (4,218,614) 4,633,533
Change in unrealized appreciation/depreciation on investments--net (7,424,128) 915,986
------------ ------------
Net increase (decrease) in net assets resulting from operations (6,132,675) 11,472,009
------------ ------------
<PAGE>
Dividends & Distributions to Shareholders (Note 1e):
Investment income--net (5,527,763) (5,905,595)
Realized gain on investments--net -- (4,763,714)
------------ ------------
Net decrease in net assets resulting from dividends and distributions to shareholders (5,527,763) (10,669,309)
------------ ------------
Capital Share Transactions (Note 4):
Net increase (decrease) in net assets derived from capital share transactions (20,819,404) 23,672,843
------------ ------------
Net Assets:
Total increase (decrease) in net assets (32,479,842) 24,475,543
Beginning of year 115,367,115 90,891,572
------------ ------------
End of year $ 82,887,273 $115,367,115
============ ============
</TABLE>
<TABLE>
The Corporate Fund Accumulation Program, Inc.
Financial Highlights
<CAPTION>
The following per share data and ratios have been derived
from information provided in the financial statements.
For the Year Ended December 31,
Increase (Decrease) in Net Asset Value: 1994 1993 1992 1991 1990
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of year $ 21.55 $ 21.22 $ 21.76 $ 20.24 $ 20.54
--------- --------- --------- --------- ---------
Investment income--net 1.18 1.31 1.46 1.52 1.67
Realized and unrealized gain (loss) on investments--net (2.41) 1.24 (.03) 1.51 (.28)
--------- --------- --------- --------- ---------
Total from investment operations (1.23) 2.55 1.43 3.03 1.39
--------- --------- --------- --------- ---------
Less dividends and distributions:
Investment income--net (1.18) (1.29) (1.47) (1.51) (1.69)
Realized gain on investments--net -- (.93) (.50) -- --
--------- --------- --------- --------- ---------
Total dividends and distributions (1.18) (2.22) (1.97) (1.51) (1.69)
--------- --------- --------- --------- ---------
Net asset value, end of year $ 19.14 $ 21.55 $ 21.22 $ 21.76 $ 20.24
========= ========= ========= ========= =========
Total Investment Return:
Based on net asset value per share (5.78%) 12.20% 6.88% 15.60% 7.19%
========= ========= ========= ========= =========
<PAGE>
Ratios to Average Net Assets:
Expenses 1.10% 1.08% 1.12% 1.16% 1.29%
========= ========= ========= ========= =========
Investment income--net 5.80% 5.74% 6.72% 7.25% 8.18%
========= ========= ========= ========= =========
Supplemental Data:
Net assets, end of year (in thousands) $ 82,887 $115,367 $ 90,892 $ 82,663 $ 76,298
========= ========= ========= ========= =========
Portfolio turnover 122% 132% 65% 87% 107%
========= ========= ========= ========= =========
See Notes to Financial Statements.
</TABLE>
The Corporate Fund Accumulation Program, Inc.
Notes to Financial Statements
1. Significant Accounting Policies:
The Corporate Fund Accumulation Program, Inc. (the "Program") is
registered under the Investment Company Act of 1940 as a
diversified, open-end investment management company. The following
is a summary of significant accounting policies followed by the
Program.
(a) Valuation of securities--Portfolio securities are valued on the
basis of prices furnished by one or more pricing services which
determine prices for normal, institutional-size trading units.
Obligations with remaining maturities of sixty days or less are
valued at amortized cost unless this method no longer produces fair
valuations. Securities for which there exist no price quotations or
valuations and all other assets are valued at fair value as
determined in good faith by or on behalf of the Board of Directors
of the Program.
(b) Income taxes--It is the Program'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 its shareholders. Therefore, no Federal income tax
provision is required.
(c) Security transactions and investment income--Security
transactions are recorded on the dates the transactions are entered
into (the trade dates). Interest income (including amortization of
premium and discount) is recognized on the accrual basis. Realized
gains and losses on security transactions are determined on the
identified cost basis.
<PAGE>
(d) Prepaid registration fees--Prepaid registration fees are charged
to expense as the related shares are issued.
(e) Dividends to shareholders--Dividends from net investment income
are declared and paid monthly. Distributions of capital gains are
recorded on the ex-dividend dates.
2. Investment Advisory Agreement
and Transactions with Affiliates:
The Program has entered into an Investment Advisory Agreement with
Fund Asset Management, L.P. ("FAM"). The general partner of FAM is
Princeton Services, Inc. ("PSI"), an indirect wholly-owned
subsidiary of Merrill Lynch & Co., Inc. ("ML & Co."), which is the
limited partner.
FAM is responsible for the management of the Program's portfolio and
provides the necessary personnel, facilities, equipment and certain
other services necessary to the operations of the Program. For such
services, the Program pays a monthly fee of 0.50%, on an annual
basis, of the value of the Program's average daily net assets. The
Investment Advisory Agreement obligates FAM to reimburse the Program
to the extent the Program's expenses (excluding interest, taxes,
brokerage fees and extraordinary items) exceed 2.5% of the Program's
first $30 million of average daily net assets, 2.0% in excess of $30
million but not exceeding $100 million of average daily net assets,
and 1.5% of the average daily net assets in above $100 million. No
fee payment will be made to the Adviser during any fiscal year which
would cause such expenses to exceed the foregoing expense
limitations applicable at the time of such payment.
FAM has entered into an Administrative Agreement with Merrill Lynch,
Pierce, Fenner & Smith Inc. ("MLPF&S"), Prudential Securities, Inc.,
Dean Witter Reynolds Inc., and Shearson Lehman Brothers Inc. (the
"Administrators"), whereby the Administrators perform certain
administrative duties on behalf of FAM.
The Corporate Fund Accumulation Program, Inc.
Notes to Financial Statements (concluded)
The Administrators receive a monthly fee from FAM equal to 0.20%, on
an annual basis, of the Program's average daily net assets and have
agreed to reimburse FAM for a portion of the reimbursement of
expenses to the Program as described above, required to be made by
FAM.
During the period May 13, 1994 to December 31, 1994, the Program
paid Merrill Lynch Security Pricing Service, an affiliate of MLPF&S,
$300 for security price quotations to compute the net asset value of
the Program.
<PAGE>
Accounting services are provided to the Program by FAM at cost.
Certain officers and/or directors of the Program are officers and/or
directors of FAM, PSI, MLPF&S, and/or ML & Co.
3. Investments:
Purchases and sales of investments, excluding short-term securities,
for the year ended December 31, 1994 were $107,560,742 and
$121,044,593, respectively.
Net realized and unrealized losses as of December 31, 1994 were as
follows:
Realized Unrealized
Losses Losses
Long-term investments $ (4,218,614) $ (3,083,490)
------------ ------------
Total $ (4,218,614) $ (3,083,490)
============ ============
As of December 31, 1994, net unrealized depreciation for Federal
income tax purposes aggregated $3,083,490, of which $632,887 related
to appreciated securities and $3,716,377 related to depreciated
securities. The aggregate cost of investments at December 31, 1994
for Federal income tax purposes was $84,737,540.
4. Capital Share Transactions:
Transactions in capital shares were as follows:
For the Year Ended Dollar
December 31, 1994 Shares Amount
Shares sold 941,678 $ 19,087,306
Shares issued to shareholders
in reinvestment of dividends. 276,909 5,541,513
------------ ------------
Total issued 1,218,587 24,628,819
Shares redeemed (2,240,697) (45,448,223)
------------ ------------
Net decrease (1,022,110) $(20,819,404)
============ ============
For the Year Ended Dollar
December 31, 1993 Shares Amount
Shares sold 3,558,780 $ 79,734,098
Shares issued to shareholders
in reinvestment of dividends
and distributions 458,843 10,088,643
------------ ------------
Total issued 4,017,623 89,822,741
Shares redeemed (2,948,852) (66,149,898)
------------ ------------
Net increase 1,068,771 $ 23,672,843
============ ============
<PAGE>
5. Capital Loss Carryforward:
At December 31, 1994, the Program had a net capital loss
carryforward of approximately $3,363,000, all of which expires in 2002.
This amount will be available to offset like amounts of any future
taxable gains.
<AUDIT-REPORT>
The Corporate Fund Accumulation Program, Inc.
Independent Auditors' Report
The Board of Directors and Shareholders,
The Corporate Fund Accumulation
Program, Inc.:
We have audited the accompanying statement of assets and
liabilities, including the schedule of investments, of The Corporate
Fund Accumulation Program, Inc. as of December 31, 1994, the related
statements of operations for the year then ended, and changes in net
assets for each of the years in the two-year period then ended, and
financial highlights for each of the years in the five-year period
then ended. These financial statements and the financial highlights
are the responsibility of the Program's management. Our
responsibility is to express an opinion on these financial
statements and the financial highlights based on our audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial
statements and the financial highlights are free of material
misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements.
Our procedures included confirmation of securities owned at December
31, 1994 by correspondence with the custodian and broker. An audit
also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits
provide a reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights
present fairly, in all material respects, the financial position of
The Corporate Fund Accumulation Program, Inc. as of December
31, 1994, the results of its operations, and the changes in its net
assets, and the financial highlights for the respective stated
periods in conformity with generally accepted accounting principles.
Deloitte & Touche LLP
Princeton, New Jersey
February 15, 1995
</AUDIT-REPORT>
