The
Corporate
Fund
Accumulation
Program,
Inc.
Annual Report
December 31, 1995
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.
Statements and other information herein are as dated and are subject
to change.
The Corporate Fund
Accumulation Program, Inc.
Box 9011
Princeton, NJ 08543-9011
<PAGE>
To Our Shareholders:
For the year ended December 31, 1995, The Corporate Fund
Accumulation Program, Inc. provided a total investment return of
+20.05%, based on a change in per share net asset value from $19.14
to $21.59, and assuming reinvestment of $1.282 per share income
dividends.
For the six-month period ended December 31, 1995, The Corporate Fund
Accumulation Program, Inc. provided a total investment return of
+7.01%, based on a change in per share net asset value from $20.85
to $21.59, and assuming reinvestment of $0.693 per share income
dividends.
The Environment
The direction of the US economy changed during the six months ended
December 31, 1995. There was strong evidence of a slowing economy by
mid-year, a trend that was quickly reversed as gross domestic
product growth rebounded to a 4.2% pace during the third calendar
quarter of 1995. However, recent economic releases suggest that this
rate of expansion has not been sustained, and that US economic
growth slowed as 1995 drew to a close.
A number of key measures of economic growth indicate evidence of
slowing momentum. Retail sales for November were soft, a trend that
continued throughout the all-important holiday season, reflecting
ongoing caution on the part of debt-burdened consumers. At the same
time, there has been an increase in initial unemployment claims,
along with weak job and income growth. As labor costs continue to
decelerate and commodity price pressures remain subdued,
inflationary pressures continue to be well under control.
These developments led the Federal Reserve Board to ease its
monetary policy slightly at the December 19, 1995 Federal Open
Market Committee meeting. However, the Clinton Administration and
Congress have yet to reach an agreement in their current Federal
budget deliberations. While the probable direction of economic
activity will continue to be the primary focus of investors in the
weeks ahead, a credible plan for reducing the Federal budget deficit
will also be an important factor in the investment outlook.
<PAGE>
Fiscal Year in Review
In 1995, the bond market experienced one of its strongest rallies in
several years as the domestic economy showed a significant
deceleration from the pace experienced in 1994. Economic data
released during the period reinforced the perception that the
economy had achieved a soft landing, thus growth was slowed without
a corresponding increase in inflationary pressures. Yields dropped
through the first six months of the year and then began to rise
slightly in July 1995 because investors feared that lower interest
rates would begin to overly stimulate the economy. However,
inflation remained contained because of the absence of significant
price pressures. The Federal Reserve Board began to ease short-term
interest rates in July and cut interest rates again in December.
Real wage growth, the key factor that determines the economy's core
interest rate of inflation, was particularly subdued.
During the periods when the market rallied--from January 1995
through June 1995--we extended the average portfolio maturity of the
Program from 8.8 years to 11.2 years. This enabled us to capture the
comparatively larger price increases which occurred at the longer
end of the yield curve. We shortened the average portfolio maturity
to 10.7 years in July and then lengthened it to 11 years in December
1995. The percentage of Treasury securities was decreased from 12%
of net assets to 10% as we traded into corporate issues to improve
the Program's total return. During the summer months, when the
market sold off, we built up our cash position which protected the
Program from the adverse effects of lower bond prices. We invested
in the bonds of industrial companies which did well and avoided
those of utilities, which performed poorly. These strategies had a
net positive impact on total investment return for the Program's
fiscal year.
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
January 29, 1996
<PAGE>
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
Corporate Fund Accumulation Program, Inc. compared to growth
of an investment in the ML C0A0 Corporate Master Bond Index.
Beginning and ending values are:
12/85 12/95
The Corporate Fund Accumulation
Program, Inc.*++ $10,000 $23,318
ML C0A0 Corporate Master Bond Index++++ $10,000 $27,148
[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
issues 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, 1995
<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 US Treasury Bonds:
Obligations-- AAA Aaa $2,000,000 8.875% due 8/15/2017 $ 2,278,060 $ 2,678,740
10.1% AAA Aaa 3,000,000 7.625% due 2/15/2025 3,529,967 3,668,430
US Treasury Notes:
AAA Aaa 1,000,000 7.875% due 8/15/2001 1,094,626 1,116,870
AAA Aaa 1,000,000 7.25% due 5/15/2004 1,037,505 1,110,000
Total US Government Obligations--10.1% 7,940,158 8,574,040
<PAGE>
Corporate Bonds & Notes
Banks & A A2 2,000,000 BankAmerica Corp., 7.125% due 5/12/2005 1,972,812 2,117,340
Thrifts--9.1% A A2 1,000,000 Citicorp., 8.80% due 2/01/2000 1,000,000 1,032,350
A A2 1,000,000 NationsBank Corporation, 7.50% due 2/15/1997 999,505 1,020,620
A+ A1 2,000,000 Norwest Corp., 6.625% due 3/15/2003 2,010,989 2,051,500
Wachovia Bank:
AA+ Aa2 1,000,000 6.55% due 6/09/1997 999,646 1,016,290
AA+ Aa2 500,000 6.80% due 6/01/2005 492,358 522,030
----------- -----------
7,475,310 7,760,130
Financial Chrysler Finance Corporation:
Services-- A- A3 1,000,000 7.13% due 9/30/1996 993,810 1,010,680
Captive--4.3% A- A3 1,000,000 10.95% due 8/01/2017 1,099,897 1,122,080
General Motors Acceptance Corp.:
BBB+ A3 1,000,000 6.625% due 10/01/2002 998,259 1,027,440
BBB+ A3 500,000 7.40% due 9/01/2025 496,010 533,460
----------- -----------
3,587,976 3,693,660
Financial A+ A1 1,000,000 American General Finance Corp.,
Services-- 7.70% due 11/15/1997 992,908 1,035,340
Consumer-- AA- Aa3 1,000,000 Associates Corp. of North America, 5.25%
8.3% due 9/01/1998 973,614 991,200
A A2 2,000,000 Beneficial Corp., 5.41% due 10/14/1997 2,000,000 1,990,918
A+ Aa3 2,000,000 CIT Group Holdings, Inc., 5.7875% due
2/28/1997 1,999,414 2,004,060
A+ A2 1,000,000 Transamerica Finance Corp., 6.80%
due 3/15/1999 999,825 1,030,810
----------- -----------
6,965,761 7,052,328
Financial A A2 500,000 Bear Stearns Companies, Inc., 6.70% due
Services-- 8/01/2003 456,549 505,145
Other--9.8% Dean Witter, Discover & Co.:
A A2 2,000,000 6.75% due 8/15/2000 1,993,017 2,070,600
A A2 1,000,000 6.50% due 11/01/2005 990,294 1,010,400
AAA Aaa 1,000,000 General Electric Capital Corp., 14%
due 7/01/1996 1,036,357 1,040,570
A+ A1 1,500,000 Morgan Stanley Group, Inc., 7% due
10/01/2013 1,302,385 1,515,330
BBB+ Baa1 1,000,000 PaineWebber Group Inc., 8.875% due 3/15/2005 996,252 1,138,200
A+ A2 1,000,000 Travelers Corp. (The), 7.875% due 5/15/2025 999,432 1,119,450
----------- -----------
7,774,286 8,399,695
</TABLE>
<PAGE>
<TABLE>
The Corporate Fund Accumulation Program, Inc.
Schedule of Investments (continued) December 31, 1995
<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*--11.8% A+ Aa2 $1,000,000 ABN AMRO Bank, N.V., 7.25% due 5/31/2005 (b) $ 999,199 $ 1,073,580
AA- A1 2,000,000 Aegon N.V., 8% due 8/15/2006 (b) 2,009,019 2,264,320
BBB+ A3 1,000,000 Bangkok Bank Public Company Ltd., 7.25%
due 9/15/2005 (b)++ 991,164 1,037,590
A+ A2 1,500,000 CRA Finance Ltd., 6.50% due 12/01/2003 (c) 1,354,359 1,520,730
A+ A2 1,000,000 Pohang Iron & Steel Industries, 7.375%
due 5/15/2005 (d) 1,017,420 1,062,390
A+ A2 500,000 Province of Quebec, 8.80% due 4/15/2003 (a) 564,177 572,505
AA A1 1,000,000 Republic of Italy, 6.875% due 9/27/2023 (a) 973,867 976,550
A A2 1,500,000 Western Mining, 7.25% due 11/15/2013 (c) 1,519,509 1,585,365
----------- -----------
9,428,714 10,093,030
Industrial-- A- A2 1,500,000 American Home Products Corporation, 7.90%
Consumer due 2/15/2005 1,497,328 1,687,110
Goods--15.4% A+ A1 2,000,000 Bass America, Inc., 6.625% due 3/01/2003 1,908,663 2,063,000
A+ A2 1,000,000 Grand Metropolitan Investment Corp., 8.625%
due 8/15/2001 1,020,379 1,127,530
AAA Aaa 2,000,000 Johnson & Johnson Co., 8.72% due 11/01/2024 2,018,987 2,325,460
A A2 1,125,000 May Department Stores Company (The),
10.625% due 11/01/2010 1,351,857 1,558,879
Philip Morris Companies, Inc.:
A A2 1,000,000 9% due 1/01/2001 1,017,911 1,125,980
A A2 2,000,000 7.25% due 1/15/2003 1,884,277 2,113,200
A A2 1,000,000 Weyerhaeuser Co., 7.95% due 3/15/2025 989,328 1,162,360
----------- -----------
11,688,730 13,163,519
Industrial-- AA- A1 1,000,000 BP America Inc., 8.50% due 4/15/2001 1,039,167 1,120,110
Energy--2.5% A+ A1 1,000,000 Petroliam Nasional Berhad, 6.875% due
7/01/2003++ 989,445 1,037,270
----------- -----------
2,028,612 2,157,380
<PAGE>
Industrial-- A A3 500,000 ALCO Standard Corporation, 6.75% due 12/01/2025 492,413 495,126
Other--6.0% AA- Aa2 1,000,000 Archer-Daniels-Midland Co., 8.125%
due 6/01/2012 1,118,050 1,149,400
Ford Capital B.V.:
A+ A2 1,000,000 7.75% due 3/15/2005 999,159 1,101,790
A+ A1 1,000,000 9.50% due 6/01/2010 1,104,098 1,245,000
BBB+ A3 1,000,000 Phillips Electronics N.V., 7.75% due 5/15/2025 996,680 1,110,990
----------- -----------
4,710,400 5,102,306
Supranational-- AAA Aaa 2,000,000 International Bank for Reconstruction &
3.2% Development, 12.375% due 10/15/2002 2,015,598 2,726,860
Transportation-- Southwest Airlines Co.:
3.3% A- Baa1 1,500,000 9.40% due 7/01/2001 1,732,595 1,725,075
A- Baa1 1,000,000 7.875% due 9/01/2007 994,232 1,089,000
----------- -----------
2,726,827 2,814,075
</TABLE>
<TABLE>
The Corporate Fund Accumulation Program, Inc.
Schedule of Investments (concluded) December 31, 1995
<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-- AA Aa3 $1,000,000 AT&T Corp., 8.35% due 1/15/2025 $ 982,828 $ 1,143,950
Communica- BBB+ Baa1 500,000 GTE Corporation, 9.10% due 6/01/2003 555,269 581,355
tions--4.4% A+ A1 2,000,000 Southwestern Bell Telecommunications, Inc.,
6.125% due 3/01/2000 2,006,454 2,031,180
----------- -----------
3,544,551 3,756,485
Utilities-- A A2 3,000,000 Georgia Power Co., 6.125% due 9/01/1999 2,978,759 3,032,670
Electric--4.9% A A2 1,000,000 Virginia Electric & Power Co., 8.625%
due 10/01/2024 981,487 1,166,162
----------- -----------
3,960,246 4,198,832
Utilities-- AA- A1 2,000,000 Consolidated Natural Gas Co., 8.75%
Gas--2.6% due 6/01/1999 2,090,542 2,181,160
Total Corporate Bonds & Notes--85.6% 67,997,553 73,099,460
Short-Term Securities
<PAGE>
Repurchase 2,338,000 Morgan Stanley &Co., Inc., purchased on
Agreements**--2.7% 12/29/1995 to yield 5.87% to 1/02/1996 2,338,000 2,338,000
Total Short-Term Securities--2.7% 2,338,000 2,338,000
Total Investments--98.4% $78,275,711 84,011,500
===========
Other Assets Less Liabilities--1.6% 1,390,650
-----------
Net Assets--100.0% $85,402,150
===========
<FN>
*Corresponding industry groups for foreign bonds which are
denominated in US dollars:
(a) Government entity.
(b) Financial institution.
(c) Industrial; mining.
(d) Industrial; steel.
**Repurchase Agreements are fully collateralized by US Government &
Agency Obligations.
++Restricted securities. The value of the Program's investment in
restricted securities was approximately $2,075,000, representing
2.4% of net assets.
<CAPTION>
Acquisition Value
Issue Date Cost (Note 1a)
<S> <C> <C> <C>
Bangkok Bank Public Company Ltd., 7.25% due 9/15/2005 9/27/1995 $ 991,164 $1,037,590
Petroliam Nasional Berhad, 6.875% due 7/01/2003 7/28/1995 989,445 1,037,270
Total $1,980,609 $2,074,860
========== ==========
Ratings of issues shown have not been audited by Deloitte &Touche LLP.
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
The Corporate Fund Accumulation Program, Inc.
Statement of Assets and Liabilities as of December 31, 1995
<S> <C> <C>
Assets:
Investments, at value (identified cost--$78,275,711) (Note 1a) $ 84,011,500
Cash 40,420
Receivables:
Interest $ 1,532,093
Capital shares sold 816 1,532,909
------------
Prepaid registration fees and other assets (Note 1d) 57,127
------------
Total assets 85,641,956
------------
Liabilities:
Payables:
Dividends to shareholders (Note 1e) 100,365
Investment adviser (Note 2) 33,587
Capital shares redeemed 29,729 163,681
------------
Accrued expenses and other liabilities 76,125
------------
Total liabilities 239,806
------------
Net Assets $ 85,402,150
============
Net Assets Consist of:
Common Stock, $.01 par value, 50,000,000 shares authorized $ 39,553
Paid-in capital in excess of par 82,605,315
Undistributed investment income--net 100
Accumulated realized capital losses on investments--net (Note 5) (2,978,607)
Unrealized appreciation on investments--net 5,735,789
------------
Net Assets--Equivalent to $21.59 per share based on 3,955,359 shares outstanding $ 85,402,150
============
</TABLE>
<PAGE>
<TABLE>
The Corporate Fund Accumulation Program, Inc.
Statement of Operations for the Year Ended December 31, 1995
<S> <C> <C>
Investment Income (Note 1c):
Interest and premium and discount earned $ 6,028,489
Expenses:
Investment advisory fees (Note 2) $ 415,822
Transfer agent fees 214,827
Printing and shareholder reports 71,187
Registration fees (Note 1d) 40,797
Professional fees 37,332
Accounting services (Note 2) 26,942
Custodian fees 17,769
Directors' fees and expenses 15,879
Pricing fees 2,628
Other 524
------------
Total expenses 843,707
------------
Investment income--net 5,184,782
Realized & Unrealized Gain on Investments--Net (Notes 1c & 3):
Realized gain on investments--net 1,240,812
Change in unrealized appreciation/depreciation on investments--net 8,819,279
------------
Net Increase in Net Assets Resulting from Operations $ 15,244,873
============
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
The Corporate Fund Accumulation Program, Inc.
Statements of Changes in Net Assets
<CAPTION>
For the Year Ended
December 31,
Increase (Decrease) in Net Assets: 1995 1994
<S> <C> <C>
Operations:
Investment income--net $ 5,184,782 $ 5,510,067
Realized gain (loss) on investments--net 1,240,812 (4,218,614)
Change in unrealized appreciation/depreciation on investments--net 8,819,279 (7,424,128)
------------ ------------
Net increase (decrease) in net assets resulting from operations 15,244,873 (6,132,675)
------------ ------------
Dividends to Shareholders (Note 1e):
Investment income--net (5,184,682) (5,527,763)
------------ ------------
Net decrease in net assets resulting from dividends to shareholders (5,184,682) (5,527,763)
------------ ------------
Capital Share Transactions (Note 4):
Net decrease in net assets derived from capital share transactions (7,545,314) (20,819,404)
------------ ------------
Net Assets:
Total increase (decrease) in net assets 2,514,877 (32,479,842)
Beginning of year 82,887,273 115,367,115
------------ ------------
End of year* $ 85,402,150 $ 82,887,273
============ ============
<FN>
*Undistributed investment income--net $ 100 $ --
============ ============
</TABLE>
<PAGE>
<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: 1995 1994 1993 1992 1991
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of year $ 19.14 $ 21.55 $ 21.22 $ 21.76 $ 20.24
-------- -------- -------- -------- --------
Investment income--net 1.28 1.18 1.31 1.46 1.52
Realized and unrealized gain (loss) on investments--net 2.45 (2.41) 1.24 (.03) 1.51
-------- -------- -------- -------- --------
Total from investment operations 3.73 (1.23) 2.55 1.43 3.03
-------- -------- -------- -------- --------
Less dividends and distributions:
Investment income--net (1.28) (1.18) (1.29) (1.47) (1.51)
Realized gain on investments--net -- -- (.93) (.50) --
-------- -------- -------- -------- --------
Total dividends and distributions (1.28) (1.18) (2.22) (1.97) (1.51)
-------- -------- -------- -------- --------
Net asset value, end of year $ 21.59 $ 19.14 $ 21.55 $ 21.22 $ 21.76
======== ======== ======== ======== ========
Total Investment Return:
Based on net asset value per share 20.05% (5.78%) 12.20% 6.86% 15.60%
======== ======== ======== ======== ========
Ratios to Average Net Assets:
Expenses 1.01% 1.10% 1.08% 1.12% 1.16%
======== ======== ======== ======== ========
Investment income--net 6.23% 5.80% 5.74% 6.72% 7.25%
======== ======== ======== ======== ========
Supplemental Data:
Net assets, end of year (in thousands) $ 85,402 $ 82,887 $115,367 $ 90,892 $ 82,663
======== ======== ======== ======== ========
Portfolio turnover 104% 122% 132% 65% 87%
======== ======== ======== ======== ========
See Notes to Financial Statements.
</TABLE>
<PAGE>
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 management investment 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, which approximates market value, unless
this method no longer produces fair valuations. Securities for which
there exists 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.
(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.
(f) Reclassification--Generally accepted accounting principles
require that certain components of net assets be reclassified to
reflect permanent differences between financial reporting and tax
purposes. Accordingly, current year's permanent book/tax differences
of $83 have been reclassified from paid-in capital in excess of par
to accumulated net realized capital losses. These reclassifications
have no effect on net assets or net asset value per share.
<PAGE>
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 excess of $100 million.
No fee payment will be made to FAM during any fiscal year which
would cause such expenses to exceed the foregoing expense
limitations applicable at the time of such payment.
The Corporate Fund Accumulation Program, Inc.
Notes to Financial Statements (concluded)
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 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 year ended December 31, 1995, the Program paid Merrill
Lynch Security Pricing Service, an affiliate of MLPF&S, $2,290 for
security price quotations to compute the net asset value of the
Program.
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.
<PAGE>
3. Investments:
Purchases and sales of investments, excluding short-term securities,
for the year ended December 31, 1995 were $82,752,466 and
$88,055,810, respectively.
Net realized and unrealized gains as of December 31, 1995 were as
follows:
Realized Unrealized
Gains Gains
Long-term investments $1,240,812 $5,735,789
---------- ----------
Total $1,240,812 $5,735,789
========== ==========
As of December 31, 1995, net unrealized appreciation for Federal
income tax purposes aggregated $5,735,789, of which $5,752,391
related to appreciated securities and $16,602 related to depreciated
securities. The aggregate cost of investments at December 31, 1995
for Federal income tax purposes was $78,275,711.
4. Capital Share Transactions:
Transactions in capital shares were as follows:
For the Year Ended Dollar
December 31, 1995 Shares Amount
Shares sold 691,078 $ 14,241,386
Shares issued to
shareholders in
reinvestment of dividends 236,055 4,837,718
------------ ------------
Total issued 927,133 19,079,104
Shares redeemed (1,302,627) (26,624,418)
------------ ------------
Net decrease (375,494) $ (7,545,314)
============ ============
<PAGE>
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)
============ ============
5. Capital Loss Carryforward:
At December 31, 1995, the Program had a net capital loss
carryforward of approximately $2,978,000, 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, 1995, 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
the 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, 1995 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.
<PAGE>
In our opinion, such financial statements and financial highlights
present fairly, in all material respects, the financial position of
The Corpor-ate Fund Accumulation Program, Inc. as of December 31,
1995, the results of its operations, 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 2, 1996
</AUDIT-REPORT>
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
Custodian and Transfer Agent
The Bank of New York
110 Washington Street
New York, New York 10286
